Consumer-driven health plans: they can offer relief to businesses feeling the squeeze of escalating health-care costs.New options in consumer-driven health plans (CDHPs) offer some sustainable relief for employers squeezed by escalating health-care costs. These plans put health-care decision-making and economic purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. in the hands of health plan members--the end users of health care. Consumer-driven products can save companies up to 30 percent in premium costs. What is a consumer-driven health plan and how does it work? * CDHPs are high-deductible health plans with deductibles of at least $1,000 and few or no co-payments. * Plans typically have a 100 percent benefit for preventive services the duty performed by the armed police in guarding the coast against smuggling. See also: Preventive such as physical exams and mammograms. * CDHPs generally include a health-care account to pay for routine medical services, doctor's visits, prescriptions and diagnostic tests. The accounts are called Health Savings Accounts A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. (HSAs) and Health Reimbursement Accounts  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. (HRAs). * The health-care accounts enable employees to pay for current health-care expenses or save for future needs--tax free. * Traditional insurance kicks in when the employee exhausts the account and meets the deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). . * Consumer-driven health plans can give members access to extensive online information and resources to help them make savvy health-care decisions. * Some consumer-driven health plans offer employees incentives that encourage them to improve their health and alter their purchasing behaviors. Which companies are a good fit for consumer driven products? * Businesses currently unable to afford health-care benefits. * Organizations of any size squeezed by current health-care costs. Consumer-driven plan annual premiums are expected to be approximately $800 less per employee than PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there coverage and $600 less than HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, coverage, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Mercer Human Resource Consulting Mercer Human Resource Consulting is a human resource consulting firm that publishes the oft-quoted "Worldwide Cost of Living Survey." External links
* Employees accustomed to using the Internet in researching and making health-care decisions. How do I pick the right plan? * Make sure the plan offers 100 percent coverage for preventive services, a broad network of participating doctors. customized deductibles, coinsurance A provision of an insurance policy that provides that the insurance company and the insured will apportion between them any loss covered by the policy according to a fixed percentage of the value for which the property, or the person, is insured. , co-payments and out-of-pocket limits. * Select a plan with insurance coverage and health account services in a single process for paying claims and communicating with providers. * Look for low administrative fees and broad investment options for HSAs (similar to 401(k) purchases). Consumer-driven plans represent one type of health plan solution available in the market today. Businesses should carefully review the full range of available health plan solutions to determine which will best meet their needs and the needs of their employees. As more products come to market, benefit representatives may wish to consult an insurance advisor. For more information, visit www.hsadecisions.org. Visit the Detroiter Online at www.detroitchamber.com/detroiter for two case studies. Click Consumer-Driven Health Plan Sample Case Studies. RELATED ARTICLE: Top 5 employee advantages of HSAs HSAs are only available to individuals enrolled in high-deductible health plans. Tax advantages and other perks perk 1 v. perked, perk·ing, perks v.intr. 1. To stick up or jut out: dogs' ears that perk. 2. To carry oneself in a lively and jaunty manner. make them a popular health-care financing option. 1. Money belongs exclusively to the employee. 2. Funds can pay for out-of-pocket medical expenses. 3. Money can be invested and income earned grows tax-deferred. 4. Unused balances carry over each year without limitations. 5. It's portable; employees keep their balance if they change jobs or health plans, and they can make withdrawals after age 65. Source: Health Alliance Plan Dennis Sirosky is senior vice president of Product and Information Technology at Detroit-based Health Alliance Plan, a Bronze-level member of the Detroit Regional Chamber. [ILLUSTRATION OMITTED] These pages are brought to you by the Detroit Regional Chamber's Health Care Central ... the hub for all business related health-care issues. For learn more about this initiative, visit www.detroitchamber.com or call (866) MBR-LINE. The Detroit Regional Chamber's Health First America program provides a portfolio of affordable basic health insurance plans, including prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, , and valuable medical services discount programs. It is not comprehensive major medical insurance and should not be considered a replacement for any existing major medical coverage. But it is a valuable alternative for employers who do not provide major medical insurance for all of their employees. For more information about Health First America, call (313) 596-0381. The Detroit Regional Chamber has retained Foster, Swift, Collins & Smith PC to prepare a Summary Plan Description (SPD (Serial Presence Detect) The method used by DIMM memory modules to communicate their capacity and features to the computer. Data such as manufacturer, size, speed, voltage and row and column addresses are stored in an EEPROM chip on the module. ) with the new changes mandated by the U.S. Department of Labor. Chamber members may obtain an SPD and/or Retiree SPD for $25 each. For more information on SPDs, call the Detroit Regional Chamber Insurance Team at (866) MBRLINE or visit www.detroitchamber.com/insurance. |
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