Consumer-Driven Health Care in Its Adolescence

Source: Kevin O’Hara, Employee Benefit Plan Review, March 2007

As the groundswell continues for the implementation of the American health care model’s latest panacea, consumer-driven health care (CDHC), it becomes important to take a moment or two to review the progress to date. The popularity of CDHC plans has grown steadily in recent years with projections for their adoption rate to accelerate as early missteps are corrected. Difficulties encountered in the communication and administration of CDHC benefits short-circuited extremely optimistic early forecasts of their penetration rate as a percentage of all sponsored plan offerings. Recent surveys, such as the Kaiser Family Foundation Employer Health Benefits 2006 Annual Survey, indicate a continued increase in CDHC enrollment but at a much reduced rate than first anticipated.

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