Consumer Driven Health Care (CDHC) |
The Consumer-Driven Health Care
(CDHC) Concept
- Consumer-driven health care (also called consumer directed
or self-directed health care) is an approach developed to address double-digit increases in the
cost of health care.
- CDHC places increased information and decision making
in the hands of employees, making them
more responsible for how their health care dollars
are spent.
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Advantages for Employees
- CDHC plan premiums average 30 percent less than
traditional health plans.
- CDHC plans positively impact retiree health plan
costs while HSAs provide opportunity for employees
to save for retirement.
- Previously uninsured employees are able to afford
major medical coverage.
- Employees receive financial protection and
information on how to control health spending.
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Advantages for Employers
- CDHC plan premiums average 30 percent less than
traditional plans.
- CDHC Wellness programs may lead to increased
employee productivity.
- More small/medium employers are able to afford
health benefits.
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Primary Components Under CDHC
- Wellness Programs
- Advocacy
- Financial Options
- Health Savings Accounts (HSAs)
- Health Reimbursement Arrangements (HRAs)
- Flexible Spending Accounts (FSAs)
- Consumer Education
- Decision Support Tools
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Health Savings
Accounts (HSAs) |
HSA Basics
- Health Savings Accounts (HSAs) were created as part
of the Medicare Prescription Drug Improvement and
Modernization Act of 2003.
- HSA account holders can put money into an HSA to
pay for current health care expenses and to save for
future health care expenses.
HDHP Basics
- An HDHP is a health insurance plan with a minimum
deductible of $1,100 for individual coverage and
$2,200 for family coverage.
- The deductible must apply to all covered benefits with
the exception of preventive care.
- The deductible must apply to the cost of prescription
medications.
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HSA Eligibility
- An individual is eligible for an HSA if he/she:
- Is covered under a High Deductible Health Plan
(HDHP).
- Has no other health insurance coverage (except for
permitted coverage; see below).
- Is not enrolled in Medicare.
- Cannot be claimed as a dependent on another
person’s tax return.
- There are no employment or income requirements to
open an HSA.
Permitted Insurance Policies With an HSA
- Accident – All
levels
- Cancer/Specified-
Disease – All
levels
- Dental
- Life
- Vision
- Hospital Protection –
Policy Series(Plan 1)
- Hospital Intensive Care
Protection (Plan 2)
- Long-Term Care
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