Consumer Driven Health Plans

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The Downfalls of Consumer-Driven Health Plans
Jamiee Coates
Professor Rhonda Bunce
July 27, 2008

Healthcare today is a very important issue. Lack of health insurance can affect the health and productivity of workers. Many people today do not have health insurance. Employment-based health insurance is in high demand to retain employees. The high healthcare costs make it hard for employers to offer employees quality health plans. The premiums for employers are increasing so they are forced to opt for cost-saving health insurance plans. Consumer-driven health plans are on the rise and have become an option for many employers.
The Downfalls
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Employer contributions to these accounts are excluded from employees’ taxable income and individual contributions are tax deductible. (Contribution to HSAs) The amounts that are contributed by the employers into the Health Savings Accounts for employees are treated as employer-provided coverage for medical expenses. My class reading discuss that most of the Health Savings Accounts have high deductibles. The deductibles have to be met first so this leaves the employees with an out- of -pocket cost for their medical services. Numerous employees with high-deductible plans may postpone medical care and end up with severe conditions that might have been prevented. Consumer-driven health care plans and Health Savings Accounts might turn out to be another cause for the rise of health care cost instead of the resolution. There is no federal law that states that employers must offer employees health insurance benefits. Competitive requirements have resulted in the offering of employee-based health insurance plans to employees. Since employer-provided healthcare benefits are the major source of health insurance for most people for most employees, it is recommended that employers understand what types of health insurance plans their employees would like. Employers should really listen to better understand employee’s health care needs. They should offer a range of health plans that would fit all of their employees. Employees would be able to
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