Consumer Driven Health Plans (CDHP)

What are Consumer Driven Health Plans? Nothing new in the insurance industry, CDHPs are designed with a deductible. You probably have a deductible on your home and auto insurance policies. Why? Because you save money in premiums, but you still have good coverage. The same applies to health insurance plans.

How do they save money? By including a deductible in your health insurance plan, the savings in premiums can often be more than the deductible itself. The premium will always be less than the traditional co-pay plan.  When you see “out of pocket maximums” associated with your health plan, remember that this is a good thing. Out of pocket maximums are a safety net, limiting your full exposure to medical costs. Nevertheless, there are actions you can take to minimize out of pocket expenses.

CDHPs can usually be paired with Health Savings Accounts (HSA) and/or Health Reimbursement Accounts (HRA). The HSA can be funded by either the employee or the employer, or both, and is owned by the employee. The HRA is funded and owned by the employer.

By enrolling in a Consumer Driven Health Plan, you and your employees will save money and still have comprehensive health insurance coverage. Often, your savings will exceed the deductible. You can further provide for your employees by using some of the premium savings and funding a portion of their deductible with a Health Reimbursement Account.

For more information about these plan options, please call our Sales Department (800) 696-8167, or email: sales@hsainsurance.com