Consumer Driven Health Plans

Consumer Driven Health Plans (CDHP) typically refer to plans that allow an employer to establish fixed cost levels with which they are comfortable. The plans are designed to increase the cost sharing with employees. It also allows employees to have flexibility in plan design, decision-making power, and freedom of choice with providers.

The objective of a CDHP is to minimize or better manage the utilization of medical services, which will then decrease premium costs. 

Examples of CDHPs:

Choice – allows your employees to choose levels of coverage to meet their needs.

Employers can offer:

• Choice within the same carrier to offer two-to-three different health plans.
• Tiered provider networks.

High Deductible Health Plans (HDHP) – these products typically refer to health plans that are tied to spending accounts, or reimbursement accounts, funded by employers. 

The three most popular options include:

• Health Savings Accounts
• HRA - Health Reimbursement Arrangements
• FSA - Flexible Spending Accounts

Hybrid Plans – Many carriers are offering plans that combine products and incorporate incentive behavior.