What is a Consumer Driven Health Plan?
A consumer driven health plan is a high deductible health plan that is generally combined with one of two tax-advantaged spending accounts: a Health Savings Account or a Health Reimbursement Arrangement. These plans require a great degree more involvement on the participant’s level in choosing when and where to seek care. Ideally the intention is to bring medical costs down, over time. If the participant feels monetary discomfort in paying for medical services, less costly care may be sought. Plan members use money from their spending account to pay for medical care – including prescriptions. When the account money is fully depleted, plan participants must pay for medical care out-of-pocket until the plan’s deductible is satisfied. The high deductible health plan functions much like a traditional major medical plan after the deductible has been met. High deductible health plans that work in conjunction with Health Savings Accounts have very specific deductible minimums and plan require
