Do you know how much a doctor's visit costs?
Do you know how much a visit to a primary care doctor costs? Or a trip to a specialist? How about the cost of your monthly prescription? The average patient has no idea.
Many patients only have to pay a copay when visiting a doctor, specialist or picking up a prescription. Their insurance carrier pays the majority of the bill which prevents patients from the truth about how much they’re spending at the doctor’s office. As a result, most folks have no incentive and make little effort to be cautious about their health-care expenditures.
Consumer-driven health plans, also called a High Deductible Health Plans (HDHP) however address this problem, making patients aware of the actual cost of their medical visits. A CDHC is a high-deductible insurance plan for catastrophic care combined with either a health savings accounts or an employer-funded health reimbursement accounts. (What is an HSA or HRA?)
A high deductible gives a patient a direct financial stake in the cost of their care; giving them an incentive to search for the best deal. The prices of medical services can vary widely, so asking informed questions can dramatically reduce health costs. When patients are encouraged to consider the cost of procedures a huge savings in the cost of health insurance is seen. According to Research from the American Academy of Actuaries, CDHC plans are driving health costs down without sacrificing quality of care.
According to Real Clear Politics, “the typical CDHC plan results in first-year cost-savings of up to 15 percent.” While traditional insurance plans, where the costs are hidden, premiums have been increasing in cost each year.
Although, “critics of consumer-driven care say that it encourages patients to forgo necessary preventive care in order to save money.” All the studies reviewed by the American Academy of Actuaries found that “patients received necessary care and that CDHC plans didn’t cause patients to avoid care.” In fact, all the studies found increases in the use of preventive care.
As the health-care debate continues, the largest challenge remains how to cut costs without sacrificing the quality of care. According to John R. Graham, Director of Health Care Studies at the Pacific Research Institute, many have said that it’s just not possible. But a decade’s worth of experience with consumer-driven plans suggests otherwise.”
