CDHPs

Question 1

CDHP key components

Answer 1

1. A high deductible health plan (HDHP)
2. Health account for health expense not covered by the HDHP
3. Information sources and tools to educate the individual on health issues
4. A health coach or consultant
5. A proactive medical professional in cases of chronic conditions

Question 2

Plan design considerations

Answer 2

1. Employer plans reflect the company size, benefit objectives, and strategy
2. Higher deductibles and larger accounts generate consumer engagement
3. Preventive care: staying healthy is cheaper than treating illness
4. Full replacement versus option
5. Employer contribution strategy
   
   5. 1 ER-established EE contribution levels will influence enrollment
6. HRA carryovers
   
   6. 1 permitting carryovers strengthens the incentive to spend more carefully

Question 3

Comparison of health care accounts

Answer 3

See screen shot folder

Please memorize it!

Question 4

Advantages of CDHPs

Answer 4

1. The typical health care consumer is unlikely to question price or value of the services received
   
   1. 1 makes it unnecessary for providers to compete on price and quality
2. Proponents assert that as consumers become financially responsible for more of costs and receive information:
   
   2. 1 consumer will purchase more efficient and effective care
   3. 2 will reduce both demand and long term health expense
3. Critics content CDHPs are simply high deductible plans that shift cost to EEs