CDHC Changes Employee Attitude Towards Health

With the rise in popularity of consumer-driven health care (CDHC) options, questions and concerns continue to be heard from employers, employees, providers and lawmakers. Who stands to benefit? What resources are needed to help people understand these plans and use them effectively? Can consumer-driven health care really control costs?

Perhaps the first question that should be asked is “why”? Why is consumer-driven health care creating such excitement?

The challenging climate of ever-rising health care costs coupled with an increasing
burden on employers to stay competitive in a global marketplace led to the passage of laws like the Health Savings and Affordability Act of 2003. These new provisions, which paved the way for the use of health savings accounts (HSAs), were created to
foster an environment where employees become more engaged in their health care decisions and have greater incentive to live healthier lives.

The reason more employers are switching from traditional health care plans to higher deductible plans supplemented by an HSA or HRA (Health Reimbursement Account) is to encourage a change in participant attitude. Rather than looking at group health coverage as “an entitlement that will take care of me with no strings attached”– many of our clients are viewing consumer-driven strategies as an opportunity to help participants get more involved in the entire health care process. When you choose to participate in a consumer driven plan, you have to make choices. And the only way to get comfortable making important choices is to devote the time and effort needed to learn more about your health and how these benefit plans really work.

Becoming more involved in the health care process can have a positive impact not only on a person’s pocketbook, but also on their well-being. Participating employees become more proactive;
preventive care is taken more seriously and lifestyle choices such as diet, exercise, smoking and alcohol consumption take on added meaning. If complications are avoided or the risk of a medical complication is identified early, the cost of treatment and the burden placed upon the patient can be
minimized.

If these important changes occur because of the increased employee awareness that consumer-driven plans bring, then there will indeed be much to be excited about in 2005 and beyond.