Chapter 3: Consumer-Driven Health Plans (CDHPs)

Question 1

Consumer-directed health plans are designed to?

Answer 1

Put more responsibility on the employee for their health care spending.

Question 2

With the continuing rise in health care costs, employers are looking to alternatives such as?

Answer 2

CDHPs to budget and manage the cost by asking employees to be more responsible for health care decisions and to share the cost.

Question 3

CDHPs cost less than traditional health insurance and tent to attract younger individuals with?

Answer 3

Healthy lifestyles who desire more control of their spending.

Question 4

CDHPs often include a high-deductible health plan (HDHP) pair with?

Answer 4

A health savings account (HSA).

Question 5

A high-deductible health plan (HDHP) has a higher deductible than?

Answer 5

A traditional insurance plan, but the monthly premiums are lower.

Question 6

When does the employer’s health plan coverage begins?

Answer 6

When an individual reaches the deductible.

Question 7

Individuals who enroll in a high deductible health plan can open a tax-deductible health savings account (HSA) to?

Answer 7

Cover current and future medical expenses.

Question 8

Why is the money put into the HSA through?

Answer 8

Either payroll deduction or direct deposit.

Question 9

If the money in the HSA should only be used for medical expenses or the individual is in charge of how and when to spend it?

Answer 9

Both.

Question 10

Any money you save in an HSA earns interest and any unused balances “roll over” from year to year to?

Answer 10

To continue to be used to pay for qualified health care expenses.