How does a consumer-directed health plan work?
A. An employee, employer, or both may make contributions to the account, depending on the specific plan. When a member has a medical expense, money is withdrawn from the account and is applied to the health-plan deductible. The member decides how to spend the account funds based on the IRS list of eligible expenses. When all the money in the account is used, the member pays the remaining deductible amount until the health-plan coverage goes into effect.
