Question

These consumer-driven health plans combine high-deductible medical insurance with financial accounts designed to encourage responsible health care purchasing by your employees. This is another approach to managing the costs of healthcare. What are the advantages and disadvantages of consumer-driven healthcare plans?

Answer 1

Answer: There are both advantages as well as disadvantages of using the consumer driven health care plans. The advantages are as follows

1. It has less costing for the employers
2. They prevent people from taking unnecessary coverage
3. They offer person specific health insurance solution
4. The employees can save money as they take less out of pocket money from the employees
5. Improves employee accountability towards his or her health needs
6. They offer better tax benefits

The disadvantages are

1. They have a high deductable and many employees don’t like this
2. It is not as useful for the employees having medical conditions as compared to the ones that do not have
3. They involve high engagement from the consumers because if the consumer do not have involvement they may land up purchasing high cost medicines