Experts in the Consumer Driven Healthcare Model
Policymakers, employers, and insurers have a growing interest in an insurance approach known as “consumer-directed health care.” This term applies to a broad range of health plan designs, but it is most commonly used to describe the combination of a high-deductible health insurance plan with a tax-preferred savings account used to pay for routine health care expenses.
A high deductible health plan is required in order to have an HSA. Routine health care expenses are paid out of a savings account. After the account is depleted, individuals pay directly out-of-pocket until they have reached the high deductible amount in their health plan.
Because the plan has a high deductible, monthly premiums are often lower than traditional health insurance.Consumers retain unspent dollars in their account, creating an additional incentive to be cost-conscious when purchasing their health services. Employers or individuals can contribute to an HSA.
While an HSA (Health Savings Account) and HRA (Health Reimbursement Account) are both tax-preferred health accounts, they have different legal requirements and incentives. CMR Benefits Group is knowledgeable in all aspects of the Consumer Driven Health Care model.