Question

Give three reasons consumers might purchase health care in a consumer driven system. HTML

Answer 1

Ans) Consumer-driven healthcare (CDHC), or consumer-driven health plans (CDHP) refers to a type of health insurance plan that allows members to use health savings accounts (HSAs), health reimbursement accounts (HRAs), or similar medical payment accounts to pay routine healthcare expenses directly, but a high-deductible.

- These benefits were designed to give more control over your hard-earned dollars and help save money on everyday out-of-pocket expenses such as healthcare, dependent care, and commuting.

- This plan is described as a three-tier system. Health care costs are first paid for by an allotment of money provided by the employer in an HSA or HRA. Once health care costs have used up this amount, the consumer pays for health care until the deductible is reached, after this point, it operates similar to a typical PPO. Once the out-of-pocket maximum is reached, the health plan pays all further costs.

- This system is referred to as "consumer-driven healthcare" because claims are paid using a consumer-controlled account versus a fixed health insurance benefit. That gives patients greater control over their own health budgets.

- In the consumer-driven model, consumers occupy the primary decision-making role regarding the healthcare they receive.