Policy Documents

Consumer-Driven Health Care Spurs Innovation in Physician Services

Devon Herrick –
June 15, 2006

Consumer-driven health care (CDHC) is leading to new models for the delivery of medical services.  Consumer-driven health plans generally include personal accounts -- such as Health Reimbursement Arrangements or Health Savings Accounts -- that allow patients to directly control some of their health care dollars.  Because they have a financial stake in their own spending, patients have incentives to shop for the best price and to make tradeoffs between convenience and cost.

As patients manage more of their own health care dollars, they will begin to seek care that is both convenient and low cost.  Empowered consumers will compare medical services and shop for care the same way they shop for other goods and services.