Consumer-Directed Healthcare Can Lower Healthcare Costs
Posted by J.P. Farley Corporation on Tue, Jan 17, 2012
Consumer-directed healthcare plans can significantly lower the cost of self-funded health insurance, benefitting both employees and employers. Consumer-directed health care provides an opportunity employees to take control of their personal health care and that of their family. In traditional health insurance plans, the consumer is usually a passive participant. In consumer-directed healthcare programs, consumers move from being passive to active participants in their personal healthcare decisions.
Consumer-directed health care moves control to the employee. As the actual consumer of healthcare services, the employee directs his own healthcare program, making healthcare decisions for himself and his family. By empowering employees to manage their own health care, consumer-directed health care also allows employees to manage their healthcare finances.
Employees gain multiple benefits when they participate in consumer-directed healthcare programs which are passed on to their employers in lower health care costs:
- Employees take greater responsibility for their health. They become more aware of any health challenges they face and are more likely to educate themselves about their medical health.
- Employees are more likely to be proactive in managing chronic conditions and taking steps to improve their health. They are likely to participate in multiple wellness programs to boost and maintain their health.
- In directing their own health care, employees develop a greater awareness of medical costs and are more likely to engage in cost-conscious healthcare decisions such as using generic instead of brand name drugs.
- Consumer-directed health care encourages employees to become health advocates for themselves and their families. Employees who participate in consumer-directed healthcare programs tend to ask more questions about medical procedures and alternative options. They are more knowledgeable about their personal health and more likely to seek additional information before making a healthcare decision, refuse unnecessary medical services and demand value for services received.
