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Consumer-Directed Health Plans

Consumer-directed health plans, also known as consumer-driven health plans, are designed to increase consumer involvement in health care choices. These plans often include a combination of high-deductible health plans and health reimbursement, health savings or flexible spending accounts. Financial incentives are part of the package and are designed to help employees make cost-conscious choices about their health care.

Consumer-Directed Health Plans Give Employees More Control

Under consumer-directed health plans, employees have more responsibility for and control over their health care costs. This is a two-part involvement. The first is a financial contribution deducted from their paychecks each month on a pre-tax basis. This tax-free deduction is deposited into an account and can then be used to pay for qualified expenses not covered under an employer-sponsored health care plan. Both employers and employees enjoy tax benefits under such plans, and employees can use the money to pay for items they would have purchased anyway. Such costs include doctor co-pays, over the counter medications and first aid items.

The second way in which employees have more control under consumer-directed health plans is the way in which benefits are selected. Consumer-directed health plans, as with all cafeteria plans, allow participants to choose which benefits programs they wish to participate in. This includes health care, dental care, dependent care, adoption accounts, and commuter benefits. By electing which programs to participate in, employees can use their health care dollars more wisely and benefit from specific services they find most valuable.

Consumer-driven health plans from take care are most beneficial when employees are given educational tools to assist them in making informed decisions. Before enrolling in any health care plan, it is important for each participant to calculate the costs and savings they can receive, as well as which benefits would best fit their lifestyles and needs.

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Additional Topics

125 Plan

Account-Based Health Plans

Adoption Costs

Cafeteria Plan

CDHP

Commuter Benefit Accounts

Consumer-Driven Health Accounts

Daycare Costs

Dependent Care Flexible Spending Accounts

Employee Benefits

Flex Debit Cards

Flex Plan

Flexible Benefit Plans

Flexible Health Spending Accounts

Flexible Medical Expense Accounts

Flexible Spending Accounts

FSA

HDHP

Health Care Debit Cards

Health Care Flexible Spending Accounts

Health FSA

Health Reimbursement Accounts

Health Reimbursement Arrangements

Health Savings Accounts

High Deductible Health Plans

HRA

HSA

HSA Debit Cards

IRS Section 125

IRS Section 125 Cafeteria Plans

Medical Expense Accounts

Medical Expenses and Income Tax

Medical IRA

Medical Savings Accounts

OTC Medications

Paycheck Calculators

Plan for Medical that Health Insurance Doesn't Cover

Planning for Elder Care

Save 25% to 40% on Health Expenses

Save on Co-Pays and Over-the-Counter Medications

Save on Healthcare

Save on LASIK and Orthodontic Costs

Section 125

Section 125 Plan Administration

take care Plans

Tax-Free Health Savings Accounts

Third Party Administrator

Unreimbursed Medical Expenses

Use It or Lose It

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Phone: 800-876-7548