Employers are becoming interested in consumer directed health plans (CDHPs), which hold out the promise of reducing costs and improving quality by giving consumers financial incentives to make more informed decisions.
The California HealthCare Foundation, a source of high quality health care reports, has released a new report by the RAND Corporation on this topic. According to the website, the key findings are:
- Short-term spending by employees in CDHPs would be 4-15% lower than in traditional plans, but the long term costs are unknown
- Few businesses offer CDHPs today, but the number is rising fast
- 3/4 of insurers offer CDHPs
- Tiered products can reduce premiums