Module 4 Flashcards
(18 cards)
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
