Part II explains how CDHC
proposals target this moral hazard problem but cannot sufficiently rationalize medical care expenditures because boundedly rational consumers cannot make the complex cost--benefit trade-offs at the point of treatment that the theory demands.
2006) reviewed studies assessing the effects of CDHC
on cost and quality that have followed the HIE.
plans may not meet equitable criteria because these plans tend to favor children and healthy individuals while women and sick individuals face escalating health care costs.
The theme of the conference "It's all about-growing CDHC
Revenue" included a keynote address on Healthcare Reform by Steve Parente, PHD, an associate professor in the Department of Finance in the Carlson School of Management at the University of Minnesota and Dave Randall, Executive Director, CDHC
Institute based in Washington, DC.
It's apparent that CDHC
can save employers money, but there are many moving parts to the solution: accounts, insurance, employee communications, and education programs that promote behavior change.
The Conference Board report suggests that many consumers shy away from CDHC
plans because they find information about them too complex or confusing.
The hallmark of CDHC
is a high deductible policy combined with a saving account, advanced Internet decision tools, and other creative benefit structures to incite participants to become more conscious of their health and more aware of the costs and benefits of various healthcare services.
Monthly Median Health Care Costs Without CDHC
Plans Employee Institution Employee only coverage $84 $326 Employee plus family coverage $309 $714 With CDHC
Plans Employee only coverage $75 $314 Employee plus family coverage $284 $673
The thrust of CDHC
is to retain standard insurance for "catastrophic" expenses that exceed amounts for which most people are able to budget on an annual basis.
Only by guaranteeing a basic health care and catastrophic package for all--and developing true measures of quality and value--can CDHC
become a dream and not a nightmare.
For example, little is known about the extent to which CDHC
changes enrollees' behavior, the extent to which quality of care is affected by CDHC
, and whether web-based information and tools actually make patients become better consumers.
To enforce this policy, it went so far as to remove from its roster one junior hostess over the age of thirty who also happened to be a widow, Maria Phillips, who wanted to attend dances as a CDHC