Studies show that the vast majority of employees acknowledge the health care cost crisis in this country, but a similar percentage doesn't feel that THEY are part of the problem.
Many health policy experts attribute this disconnect to the fact that most health care consumers are insulated from the true cost of care. The decade-long reliance on co-payment plans has convinced many consumers that an office visit only costs $10 when the true cost may range from $80 to $180.
Consumer Driven Health Plans (CDHP) are a recent product development with an overarching goal of engaging employees (and their dependents) in the purchasing decisions affecting their health care. The theory behind CDHPs is that if health care consumers have a greater financial stake at the time that a health care 'purchase' has to be made, the consumer will ask questions about price when selecting a provider for care.
Consumer Driven Health Plans can have many plan design variations, but most plans require employees to shoulder a higher percentage of cost before full insurance protection kicks in. As such, CDHPs can be offered as a low cost benefit option, on either a fully insured or self funded basis.
Employers who elect to offer CDHPs must support the new plan with a communication strategy that:
Explains why health care costs are continuing to increase;
Describes what it means to be a better health care consumer; and
Provides employees with the necessary tools and resources necessary to make educated decisions about the health care they need.
All of us can benefit from being more informed health care consumers, and the decision support tools used by Consumer Driven Health Plans can actually have broad usage regardless of your plan design.
C.M. Smith can help you examine CDHPs as an option for helping to lower your overall medical costs.
