I hear a lot about HSAs and CDHPs. What are they, and why are they so popular?
Consumer-driven health plans are high deductible health plans that are designed to encourage consumers to make wiser, cost-effective healthcare decisions. They are usually attached to health reimbursement arrangements and health savings accounts, (HSAs and HRAs.) These tax-advantaged, pre-taxed-dollar savings accounts may be used to pay for the out-of-pocket healthcare expenses that are not covered by a high deductible plan. The surge in popularity in CDHPs is due to recent studies that show that individuals who are responsible for a significant amount of their healthcare expenses are more likely to adopt healthier lifestyle patterns and behaviors, such as such as quitting smoking, losing weight, and exercising regularly.
