Consumer Directed Health Plans (CDHP)

by  Wyn Staheli, Director of Content - innoviHealth
Sep 17th, 2016

Consumer Directed Healthcare Plans (CDHP) were developed as a way to shift the control of healthcare dollars from the insurance companies to the patient (consumer). The goal of these types of plans is to allow the patient to take a more active role in their own health and healthcare decisions in an effort to control costs. Typically these are health insurance plans that allow members to use health savings accounts (HSAs), Health Reimbursement Accounts (HRAs), or similar medical payment products to pay routine health care expenses directly, while a high-deductible health plan (HDHP) protects them from catastrophic medical expenses. The numbers of employees covered by CDHPs has grown significantly over the years and is projected to continue to increase due to Obamacare (PPACA).

CDHPs are generally associated with:

• Health Savings Accounts (HSA)
• Medicare Medical Savings Accounts (MSA)
• Health Reimbursement Arrangement (HRA)
• Voluntary Employee Benefit Associations (VEBA)
• Multiple Employer Welfare Arrangements (MEWA)

No-Insurance and the Cash Practice

Even though the Affordable Care Act has increased the number of insured patients, not everyone is on a plan. Additionally, some healthcare providers are frustrated with the requirements of insurance payers and are moving to a cash practice. It does provide an alternative to the insurance reimbursement process. Providers need to be careful about using the term 'cash discount' however. There could be legal ramification for doing so. Some considerations are:

• Healthcare Discount Programs
• Time of service discounts

Links:

• How Employers are Reacting to the ACA by Mercer
• Employer Health Benefits Survey by the Kaiser Foundation
• U.S. Employers Changing Health Benefit Plans to Control Rising Costs, Comply with ACA by National Business Group on Health
• The Affordable Care Act