If you are hearing about CDHPs for the first time then you have not be advised properly in employee benefits matters. CDHP stands for Consumer Driven Health Plans and been in the market since 2003. Companies who have already implemented these are at the cutting edge of employee benefits and both the employer and employees are reaping the rewards of premium saving and low out of pocket costs.
Health care costs in the U.S. continue to rise after a decade of unexpected growth. Hoping to encourage a turnaround, many employers are quickly turning to a new trend in employee health care benefits: consumer-driven health plans. The purpose of these plans is to educate employees concerning the true costs of medical services and to hold employees more responsible for their medical care purchase decisions. Though the employee takes the reins with these plans, consumer-driven health care is still sponsored by the employer
Both a traditional plan and a CDHP require some out-of-pocket expenses, but an HDHP (high deductible health plan) with an HSA has proven about 43 percent savings each year over a traditional plan based on premiums alone. That leaves substantial pre-tax dollars that can be put away for a health situation in the future.
HSAs allow the patient to save money on premiums, set aside pre-tax money to pay for out-of-pocket expenses, and pay with cash when the time comes. That means savings on the front end, tax savings throughout the year, and the negotiating power of cash at the point of service. Consumer-driven health care creates choices for each and every transaction, and can be a cost-efficient alternative to traditional health plans.
Consumer-driven health plan (CDHP) continues to transform the health care system one step at a time and here to stay. Successful implementation of CDHP includes a financial vehicle like HSA or HRA and wellness program for the insured.
To learn more about CDHP and employee benefits and we will educate you about CDHP and see if CDHP is the right benefit plan for your organization.