The Myths and Realities of Consumer-Driven Health Plans

Source: Bill Tait, Employee Benefit Plan Review, December 2006, Volume 61, no. 6

Few will argue that health care costs have increased at a record rate over the last few years in America. While much has been written on consumer-driven health plans, concerns still exist as to whether they are the best strategy for controlling health care inflation and ensuring appropriate utilization of and access to the health care system on a sustainable basis. The following are some of the most common myths about consumer-driven plans, along with the reality. 1. Consumer-driven plans are merely a cost-shifting strategy for employers to save money at the expense of their employees. 2. Consumer-driven plans force members to deny themselves necessary treatment because they have to cover more of the cost of care. 3. Prescription drug compliance rates for effective management of chronic illnesses, such as heart disease, will decline with the increasing prevalence of consumer-driven plans. 4. Consumer-driven health plans will attract “adverse selection,” with only younger, healthier consumers joining them.

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