• 22 days ago

    Impact of Consumer-Driven Insurance

    Public assistance, whether state of federal was created with the intentions of providing access to healthcare to those who will have a difficult time finding private insurance outside of their employer. Throughout the years there have been plenty of abuse in unnecessary hospital visits, or visits to the hospital or doctor’s office for miniscule health concerns. To combat these types of visits, the United States have implemented a law called the Consumer-Driven health plan. Thomas Beaton of Xtelligent Healthcare media describes consumer-based health plans as plans that have high deductibles with tax-advantage spending accounts to increase the responsibility of the patients own healthcare bill (Beaton, 2017). Having unnecessary hospital visits can put a burden on a hospital staff, and can drive up health care costs that can cost the tax payers in the upcoming fiscal budget plan.

    Benefits of Consumer-Driven Insurance
    One of the biggest reliefs of Consumer-Driven Insurance (CDI)) is the money that it saves people who are healthy (Rook, 2015). The concept is simple, the less you go, the less you pay. This can be seen as an incentive to people who are self-conscious about their health. This can motivate people to want to take the extra steps to assure a healthier lifestyle so won’t need to visit the hospital. This can also be the catalyst to people who frequently visit the for the smallest concerns (That are sometimes not a big issue such as gas, or a soar throat). People are more inclined to be more attentive, and more responsible with anything that is at their expense. If the price for copays and deductibles are based on the amounts of visits and general testing (Blood work, MRI, CT-SCAN), the patient would focus more on serious health concerns.

    Cons of Consumer-Driven Insurance
    Low income families are immensely impacted by CDI. “Visits with children with special health care needs to specialists are not considered preventive care, parents will tap into their HSA, HRAs to pay for these visits as well as laboratory tests, imaging, therapies, and other essential health care services.” (Committee of Child Health Financing, 2015, p. 624). This would cause more out of pocket expenses on people who are already having a difficult time paying for health insurance. This will drive up the out of pocket share costs putting low income people in more debt. Another concern is the inaccessibility of long-term health care, depending on the policy, it won’t cover the treatment.

    Consumer-Driven Insurance will limit the excess hospital visits. This will allow people to save money on share costs. It is always seen as a good approach to not pay for services you do not need. However, this is more conceivable with employers, with low income families it can cost them more on copays and deductibles. This will render them ineligible for long term care if needed.

    Committee on Child Health Financing (2007). High Deductible Health Plans and the New Risks of Consumer-Driven Health Insurance Products. American Academy of Pediatrics. 622-626. Retrieved from https://pediatrics.aappublications.org/content/pediatrics/119/3/622.full.pdf
    Rook, D. (2015). The Pros and Cons of Consumer-Driven Healthcare. Employees Benefits Blog. Retrieved from https://www.google.com/amp/s/www.griffinbenefits.com/employeebenefitsblog/consumer-driven-healthcare-cdhc-cdhc%3fhs_amp=true
    Beaton, T. (2017) What are the pros and cons of Consumer Directed Health Plans? Xtelligence Healthcare Media. Retrieved from https://www.google.com/amp/s/healthpayintelligence.com/news/amp/what-are-the-pros-and-cons-of-consumer-directed-health-plans