Policy Documents

Consumer Driven Health Care: The Changing Role of the Patient

Devon Herrick –
May 1, 2005

In this article, author Devon Herrick writes;

Consumer driven health care is a new paradigm for health care delivery.  Defined narrowly, consumer driven health care refers to health plans in which individuals have a personal health account, such as a health saving account (HSA) or  health reimbursement arrangement (HRA), from which they pay medical expenses directly.  The phrase is sometimes used more broadly to refer to defined contribution health plans, which allow employees to choose among various plans, often with a fixed dollar contribution from an employer.  Those who opt for plans with rich benefits may have to contribute a significant amount of their own money in addition to an employer's contribution.  Those with more basic coverage contribute less of their own money.