Consumer-Directed Health Plans (CDHP) are health insurance strategies that empower consumers to take control of their health care. These plans promote freedom of choice, savings, tax advantages, and can be portable.
Lately employers have been coping with rising costs by cutting benefits and increasing some of the cost to the employees. The trend to deal with these rising costs has been to cut benefits and increase some of the cost to the employees. Consumer Health Plans are appealing because they can be structured to compliment a savings account, so both the employee and employer will benefit.
The Proposed Structure for HDHP
Advantages to the Employer :
- Employers can offer better health plans to employees
- Health plan premiums decreases
- Unused HRA funds return to the employer generating additional savings
- Employee owned personal medical funds promote increased involvement in health care decisions
- Encourages employees to ‘shop around’ based on quality of care and price; therefore, renewals are usually less painful
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Advantages to the Employee :
- Increased consumer choice
- Resources are used based on the employees unique healthcare needs
- Funds rollover year to year
- Increases take home pay
- Lower premiums
- Portability
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Innovative Health Insurance Design will help you design a CDHP plan that is right for your business!
Contact us today!
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