What does a consumer-driven health plan (CDHP) typically include?

A consumer-driven health plan (CDHP) typically includes a high-deductible health plan paired with a medical savings plan. This structure encourages individuals to take an active role in managing their healthcare expenses. With a high-deductible health plan, the insured individuals are responsible for a larger share of their healthcare costs before the insurance coverage kicks in. This design promotes consumer engagement by making them more aware of their healthcare spending and encouraging them to seek cost-effective healthcare services.

The medical savings plan, which may include Health Savings Accounts (HSAs) or Health Reimbursement Arrangements (HRAs), allows individuals to save money tax-free to pay for qualified medical expenses. This combination of a high-deductible plan and a savings mechanism provides more flexibility and control over healthcare choices, empowering consumers to make informed decisions about their health services.

In contrast, other options describe health plans that do not emphasize consumer engagement or shared financial responsibility. For instance, low-deductible plans usually require minimal involvement from the employee and may not promote cost-conscious decision-making. Employer-funded insurance with no employee contributions would not grant individuals any ownership over their healthcare spending, thus lacking the consumer-driven aspect. Traditional fee-for-service insurance typically involves more predictable costs for patients without necessarily encouraging them to