Consumer Driven Healthcare
Consumer driven health care (CDHC) is a trend that has become more popular with employers in recent years. This system does not shift costs to employees, but it is designed to encourage them to examine the costs, benefits and quality of health care by putting them in control of their medical spending through use of health savings accounts (HSAs), health reimbursement accounts (HRAs) or other similar medical payment products. These accounts are paired with high deductible health plans (HDHP) that protect employees and their families from expenses associated with catastrophic medical events.
As employees grow more conscious of their medical spending, their behavior towards medical care often changes in the following ways:
- Asking more questions and discussing treatment options more in-depth with doctors
- Researching the cost of treatments and procedures to seek out the best quality and value
- Taking advantage of low-cost or no-cost care options, such as preventive care
Having this control over their costs and health care decisions not only benefits employees, but it tends to lead to better overall health, which ultimately drives down costs - benefiting not only the employee but the health plan and the employer as well.
At Front Range Insurance Group, we'll help you explore the best health care options for you and your employees, including what CDHC products might be right for your business.