CDHC (Consumer Driven Health Care) is a term that’s used to describe a variety of mechanisms for providing health coverage, all of which encourage individuals to become actively involved in making their own health care decisions, for example, by designing their health coverage, choosing their service providers, selecting health care services, and managing their own wellness. Narrowly defined CDHC plans are Health Savings Accounts (HSA) and Health Reimbursement Arrangements (HRA). More commonly accepted definitions includes the older yet very popular Flexible Spending Account (FSA).
CDHC gives employees a stake in their health care costs. Employees who participate in CDHC plans, like those who participate in traditional group health plans, shoulder a portion of their health care costs by being financially responsible for their deductibles, co-payments, uncovered expenses, and expenses above plan limits, to name a few examples. We refer to this employee responsibility as the “corridor of risk,” and that corridor usually is wider in CDHC arrangements than in traditional group health plans.
TCO offers affordable and flexible CDHC plans that are very effective and allow employers and employees to get a better handle on their own health plans. Under this tab learn more about FSAs, HRAs, and HSAs.
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