Consumer Driven Health Care - Essay Example

Consumer Driven Health Care (CDHC) is a three-tier health insurance plan that allows individuals to use their health savings accounts, out-of-pocket payments or health reimbursement arrangements (HRAs), to pay for health care expenses (Collin et. al., 2005). CDHC allows members to pay for health care services in this way while still their health insurance policy pays for more expensive medical expenses. Health Insurance is highly deductable and costs less when used to pay for health care expenses but for routine health care expenses, an individual pays directly for the expenses through a pre funded account provided by a bank or an insurance plan. 2.0 Goal of Consumer Driven Health Care Consumer driven health care gives an individual the opportunity to pay for routine medical expenses using consumer controlled account instead of the highly deductable fixed health insurance.

This is an advantage to the patients because it allows them to have a greater control on their health care budgets. In this consumer driven health care plan, individuals have a role in decision making regarding the care they receive. Patients are able to ask about the cost of a treatment and choose a treatment option that is less expensive. This consumer directed health plan also advices employees on cost and selection of quality services, which enables employees to make informed decisions on their health care (Rowe, et. al., 2008, pp.12-19)..

care gives an individual the opportunity to pay for routine medical expenses using consumer controlled account instead of the highly deductable fixed health insurance. This is an advantage to the patients because it allows them to have a greater control on their health care budgets. In this consumer driven health care plan, individuals have a role in decision making regarding the care they receive. Patients are able to ask about the cost of a treatment and choose a treatment option that is less expensive.

This consumer directed health plan also advices employees on cost and selection of quality services, which enables employees to make informed decisions on their health care (Rowe, et. al., 2008, pp.12-19). Through the national health care plan, low income earners can also enjoy the benefits of having the consumer driven health care plan because they will be able to afford the health care services. Health care providers respond to the high consumer enrollment to the health plan by further providing quality services at cost effective prices. 3.0 Disadvantage of Consumer Driven Health Care Employees that are enrolled into the consumer driven health care plan tend to pay more for health care services because of the out of pocket payment, compared to those enrolled in traditional payment plans (Collins et. al., 2005, pp.8-23). Low income employees are highly negatively affected by this health care payment plan than high income earners.

This is because these employees face the risk of high out of pocket payments and most opt not to receive treatment because of the high expenses. This leads to more ill workers that and has a long-term consequence both to the worker and the employer. Delaying or skipping treatment due to high health care costs affects negatively on an