1. Consumer-Driven Health Plans: How do consumer-driven health plans work for di
ID: 1234501 • Letter: 1
Question
1. Consumer-Driven Health Plans: How do consumer-driven health plans work for different sections of the population? Which socioeconomic group is likely to benefit the most? Consider the following sections of the population.Low-income versus high-income
Well versus unwell (people with chronic conditions and high costs of care)
Employed, self-employed, unemployed
2. Managed Care: Healthcare maintenance organizations (HMOs) are the most prevalent type of Managed Care. Explain the positive benefits and negative aspects, respectively, of HMO managed care from the provider
Explanation / Answer
Defined narrowly, consumer-driven health care (CDHC) refers to third tier health insurance plans that allow members to use health savings accounts (HSAs), Health Reimbursement Accounts (HRAs), or similar medical payment products to pay routine health care expenses directly, while a high-deductible health plan (HDHP) protects them from catastrophic medical expenses. High-deductible policies cost less, but the user pays routine medical claims using a pre-funded spending account, often with a special debit card provided by a bank or insurance plan. If the balance on this account runs out, the user then pays claims just like under a regular deductible. Users keep any unused balance or "rollover" at the end of the year to increase future balances, or to invest for future expenses.
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