Intent of Consumer Driven Health Care (CDHC)
Consumer Driven Health Care (CDHC) are health insurance plans designed to give consumers control over their health care expenditure. That is; patients are in control of their dollars. It gives patients the flexibility to shop around for the cost of health care. By doing this, they can choose the most suitable cost-effective health care. Reimbursement plans, health savings accounts, and high-deductible plans are types of plans used in CDHC. On the other hand, traditional insurance plan restricts patients from shopping around for health care cost as most health care cost are fixed. In addition, this program promotes health care quality as it gives patients the freedom to choose their preferred physician (Catherine, 2010, p. 263).
Argument against CDHC One of the disadvantages of this program is the lack of information and education to consumers and health care providers. There are many consumers of this program who do not have adequate understanding of how this program works. For instance, many consumers paid for unwanted services. It occurs due to consumers not being specific about the kind of services they wanted to healthcare providers. Thus, this mistake can be attributed to lack of education and information from the insurance company to consumers. Furthermore, it is argued …show more content…
Even though this program was designed to give consumers freedom over their healthcare expenditure, it those not give consumer freedom over the quality of care they will receive. It is argued that the program is designed to benefit affluent consumers who can spend extensively on health care since consumers get better healthcare quality when they pay more. Conversely, less-affluent consumers are prone to receive average healthcare quality due to inability to spend more on healthcare (Rodwin, 2003, p.
Consumer Driven Health Care (CDHC) are health insurance plans designed to give consumers control over their health care expenditure. That is; patients are in control of their dollars. It gives patients the flexibility to shop around for the cost of health care. By doing this, they can choose the most suitable cost-effective health care. Reimbursement plans, health savings accounts, and high-deductible plans are types of plans used in CDHC. On the other hand, traditional insurance plan restricts patients from shopping around for health care cost as most health care cost are fixed. In addition, this program promotes health care quality as it gives patients the freedom to choose their preferred physician (Catherine, 2010, p. 263).
Argument against CDHC One of the disadvantages of this program is the lack of information and education to consumers and health care providers. There are many consumers of this program who do not have adequate understanding of how this program works. For instance, many consumers paid for unwanted services. It occurs due to consumers not being specific about the kind of services they wanted to healthcare providers. Thus, this mistake can be attributed to lack of education and information from the insurance company to consumers. Furthermore, it is argued …show more content…
Even though this program was designed to give consumers freedom over their healthcare expenditure, it those not give consumer freedom over the quality of care they will receive. It is argued that the program is designed to benefit affluent consumers who can spend extensively on health care since consumers get better healthcare quality when they pay more. Conversely, less-affluent consumers are prone to receive average healthcare quality due to inability to spend more on healthcare (Rodwin, 2003, p.