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WHAT IS A CONSUMER DRIVER HEALTH
PLAN? A Consumer Driven Healthcare Plan generally consists of
:
- A Healthcare Reimbursement
Account
Offered
on a pre-tax basis, with the employer funding the account. Employees
access this account first to pay for allowable medical expenses they
incur during the year. Dollars remaining in the account at year-end,
roll over, and may be used in the next year to cover future medical
costs. HRA accounts normally are
funded by employer premium savings. Dollars in this Account can be used
to pay medical, dental, vision, chiropractic, vitamin, over the counter
medications, etc. Employee's can earn additional contributions to
their Accounts by the employer for spotting and reporting medical and
billing errors that result in cost savings to the plan.
- A
Deductible
If an employee's expenses exceed the amount
in their Account , they generally must pay their own expenses out of
pocket until the plan deductible has been met. (Services covered
by their Reimbursement Account apply toward the annual
deductible.) Preventive care services can either be paid for by Health
Coverage or out of the employee's Account.
- Insurance
Coverage
Insurance coverage is not mandatory
and indeed may not exist in large employers or employers that are only
providing limited benefit plans to employees. However, generally
an underlying health insurance coverage exists to pay expenses incurred
after the deductible has been met, relieving the employee from further
exposure to medical costs during the plan year..
*Online and phone-based
resources can be made available to help members make health and wellness
decisions. Searching for health information and the ability to track
all their account expenses and activity online, helps them make
better decisions and to know what their current "financial account
position" is. |
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