DO CONSUMER-DIRECTED HEALTH PLANS SOLVE THE PROBLEM OF RISING HEALTH CARE COSTS AND UNINSURANCE?
The thinking behind CDHPs is that if you’re spending your own money, you will think twice about whether a visit to the doctor or a treatment is really necessary and/or you will bargain shop for your health care. Additionally, people think that the lower monthly premium costs of the HDHP in CDHPs will make insurance accessible to the under- and uninsured who previously couldn’t afford it. The problem is in these underlying assumptions: • that people spend so much on health care only because they don’t see it as “their” money but insurance money; • that it’s possible for people to shop around for health care and once they do, this will force providers to compete with each other and offer better care at lower cost; • that CDHPs cost less than traditional health plans and result in less spending. Let’s examine these assumptions: Question: Will CDHPs really limit consumer health care spending? Answer: No. According to the Tax Policy Center, 95% of all medical expenditures from insured house
