What are Consumer Driven Health Plans?
Consumer-driven health plans (CDHP) rely on health insurance to cover larger medical expenses and preventive care. And they are usually paired with a tax-free Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA) that can be used to pay for smaller and routine health care expenses. Employers usually provide part of all of the money in the HSA, and, because the money belongs to the employee, they have a reason to be a value-conscious shopper in the health care marketplace.
