Consumer-Driven Plans
Basically giving employees a tax incentive to save for their out-of-pocket health care costs while minimizing their employer's benefits outlay, Consumer Driven Health Plans (CDHPs) are designed to engage employees to better understand and manage their own health expenses while working to improve their health status.
- CDHPs weave together a high-deductible health plan and a tax-exempt health account, usually a Health Savings Account (HSA), Health Reimbursement Account (HRA), and/or a Health Flexible Spending Account (FSA).
- Employees use the pre-funded spending account to help cover deductibles, coinsurance, and qualified health care expenses, as well as save for future health care expenses.