Module 4 Flashcards
A type of health plan with a high deductible and a personal spending account that puts more risk on the participant
CDHP
- Controlling costs and promoting greater value in healthcare spending by shifting responsibility to consumers
- Accommodating diverse consumer preferences
Two main intentions of a CDHP
The portion of healthcare costs paid by the participant before the health plan pays any portion
Deductible
The maximum amount a participant will pay for covered services during a plan year
Out of Pocket Max
A type of savings plan funded only by the employer, with no federal limit on contributions and the option to allow accumulation from year-to-year
HRA
A type of savings plan that may be funded by the employer, employee, or both parties, has a max allowable annual contribution limit, and accumulates over time
HSA
A type of savings plan that allows for non-medical use of the funds
HSA
The entity who has control over the contributions to an HRA
Employer
How insurers design plan policies results in low and high-risk participants having different preferences for coverage
Risk Selection
The category of enrollees most likely to use CDHP information tools
Those with chronic illnesses
More firms offer ____ than ____.
HSAs; HRAs
Large firms are more likely to offer what type of plan than small and medium-sized firms?
CDHPs
CDHP premiums are generally _____ than those for other types of plans.
Lower
Risk selection may result from an inefficiency due to this between insurers and enrollees
Asymmetric information
When CDHPs generate greater risk selection because products are attractive to low-risk enrollees who expect to use less care
Risk Segmentation
Reductions in pharmaceutical and outpatient expenditures
Drivers for CDHP savings
CDHPs generate _______ reductions in the use of preventative services when they’re exempted from the deductible
Modest to no
Plans with higher deductibles and less generous HRAs generate ___ reductions in CDHP spending
Large
CDHP
A type of health plan with a high deductible and a personal spending account that puts more risk on the participant
Two main intentions of a CDHP
- Controlling costs and promoting greater value in healthcare spending by shifting responsibility to consumers
- Accommodating diverse consumer preferences
Deductible
The portion of healthcare costs paid by the participant before the health plan pays any portion
Out of Pocket Max
The maximum amount a participant will pay for covered services during a plan year
HRA
A type of savings plan funded only by the employer, with no federal limit on contributions and the option to allow accumulation from year-to-year
HSA
A type of savings plan that may be funded by the employer, employee, or both parties, has a max allowable annual contribution limit, and accumulates over time
