To counter the problem of healthcare financing in the USA
, Consumer-directed health care (referred as CDHC) has emerged in the recent past, designed to decrease the health spending by providing financial incentive for consumers to choose the best healthcare proposition. With both public and private sector financiers looking to reduce their healthcare expenses, CDHC has been opted as a way of bringing greater efficiency and cost control into health care.
Consumer Directed Health Care refers to health insurance plans that permit patients to use medical payment products like personal Health Savings Accounts, Health Reimbursement Arrangements etc as a mode of settling the routine medical claims. So, patients have more control over their health budgets as they pay through consumer-controlled accounts for routine medical claims as opposed to a fixed health insurance benefit. Principally, it aims at giving patients greater control over their health care, both economically and medically. It is also meant to improve healthy competition among healthcare providers to increase the range of patient control.
Consider this example. A health savings account (HSA) linked with a high deductible health plan lets you take care of routine claims through HSA and other high claims through the regular health plan. This is a typical CDHC plan with a lower premium than a traditional health plan premium, allowing you to take charge of your routine healthcare expenses in turn making you more aware of the cost and quality of care involved before spending your money.
There are tax advantages as well like in the case of HSA. However, each individual needs are different and a health insurance plan must be taken after careful consideration and professional advice on the matter.