Consumer-driven

Consumer-driven health care (also known as CDHC, consumer-driven health plans (CDHP), consumer-driven health insurance, or consumer-driven health coverage) is a type of health care system that allows individuals to use health savings accounts (HSAs), Health Reimbursement Accounts (HRAs), and similar medical payment products to pay routine health care expenses directly, while a high-deductible health plan (HDHP) protects them from catastrophic medical expenses.

Overview

Consumer-driven health care is a term applied to a system where consumers, rather than third-party payers, pay for a substantial portion of health care costs out of pocket. The term encompasses a variety of individual health care financing arrangements, including health savings accounts (HSAs), Health Reimbursement Accounts (HRAs), and Flexible Spending Accounts (FSAs).

History

The concept of consumer-driven health care has been around for several decades, but it gained prominence in the United States in the early 2000s as a response to rapidly rising health care costs. The idea is that by giving consumers more control over their health care spending, they will become more cost-conscious and make better health care decisions.

Advantages and Disadvantages

Advocates of consumer-driven health care argue that it can lead to lower health care costs, improved quality of care, and increased patient satisfaction. Critics, however, argue that it can lead to underuse of necessary care, increased financial risk for individuals, and greater health disparities.

See Also

• Health care in the United States
• Health insurance in the United States
• Health savings account
• Health Reimbursement Account
• Flexible spending account

Consumer-driven Resources
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