The Philosophy Behind Consumer Directed Healthcare
Posted by J.P. Farley Corporation on Tue, Jan 10, 2012
Employees who are reluctant to take part in consumer directed healthcare and use Health Savings Accounts (HSAs) sometimes change their minds after they see how it works. If you are thinking about launching a consumer directed healthcare plan for your employees, you can get expert assistance from third-party administrator J.P. Farley to help make the transition smoother.
Implementing a consumer directed healthcare strategy involves more than simply offering an HRA or HSA plan to your employees. Consumer directed healthcare represents a fundamental shift in the way employers provide benefits to participants and in the way participants choose to use healthcare services. With a traditional healthcare plan, employees operate with a “use it or lose it” mentality because they are told that their healthcare plan dollars will disappear if they do not spend it during the given plan year.
Consumer directed healthcare offers more options so employees can select the services that are right for them. With our online tools, employees can become more knowledgeable about healthcare and this will help them make informed decisions. With a consumer directed healthcare plan administered by J.P. Farley, your employees will feel more in-control and have the ability to easily manage their healthcare finances.
Not only does consumer directed healthcare make it easier for individual employees to better manage their healthcare finances, it also makes it possible for the organization as a whole to reduce health care costs.
The Heartlander reports that the state of Indiana offers its employees the option of using HSAs, paired with a HSA eligible health plan, and a large percentage took this option. The state has taken care to make sure employees understand how these plans function.
It was also reported that,
"Indiana saved at least $20 million in 2010 as a result of this high HSA enrollment…”and that “The Mercer consulting firm calculates the state's total costs as being reduced by 11 percent…”