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Consumer-Driven Healthcare Plan in the US


Consumer-driven health care plans have experimented within the United States over the last ten years. The plan combines a highly deductible insurance plan policy with various accounts. It covers approximately eight million individuals (8 Million). The number has risen as compared to 2007 where the number of individuals covered was 4.5 Million. This indicates that the plan is rapidly growing (Tobarrok, 2009). According to researches carried out by the American Academy of Actuaries, they came out with various conclusions such as; a consumer-driven healthcare plan that is properly designed can result in substantial savings.

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This can occur without affecting CDH members’ status health adversely. During the first year of executing the Consumer Drive Health plan, the cost savings were between twelve percent (12%) to twenty-one percent (21%) than under the traditional plan. Furthermore, costs under CDH plans have grown slowly as compared to those in traditional plans. The main challenge of CDH plans is that they could result in individuals avoiding cases that are preventative. From the studies, it was evidenced that there was a great increase in services that were preventive for all CDH participants (Anna et al., 2008).

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If a consumer-driven health care plan is fully implemented, it will aid in transforming the delivery of health care and paying for it. Depending on whether these initiatives will affect the cost of care provision remains to be experienced. The increase of per annum double-digit premiums has triggered the employees to reduce their coverage on health. Some have been forced to health plans that are highly deductable making them be highly responsible financially for the individual’s healthcare (Bolch, 2012).

The United States of America utilizes a lot of per capita on taking care of health issues than many countries in the world. The gross domestic product spending has increased from 9%-16% in the year 1980 and 2008 respectively. Thus if drastic measures are not taken into consideration, then the figure will hit the 20% mark in years to come.

However, legislative portions have taken a significant effect such as raising the age limit to twenty-six (26), so that dependents can be under the insurance policy of their parents. Another initiative taken is the lifetime coverage limits removal and enhancing of preventive services cost-sharing. Despite the effects, there still lie major issues. These issues are such as the development of insurance exchanges that are state-oriented and the existing mandate that each and every individual should buy insurance or charged a fine.

There has remained in flux because of the litigation that is pending before the United States of American high court. Courts federal appeals have divided themselves on personal mandate issues. The majority of the states in America are still waiting for the verdict from the Supreme Court before implementing exchanges. Each and every individual will be required by the law to purchase insurance in 2014.


The health care reform system will continue to be a contentious issue regardless of the business perspective of it. However, individuals should conceive that any health care reform should address cost, accessibility, and quality. Over the long term, health care will become more affordable as a result of Consumer Drive Healthcare because businesses will be responsible for their employees’ healthcare as part of the benefits package offered to them. It will result in low spending costs and will result in health care spending costs to grow slowly. However, critics contests that, these plans will be beneficial to the wealthy class in the markets dealing with insurance thus imposing health care costs on the poor and sick individuals.

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Anna, D., Greene, J., & Hibbard. (2008). Do consumer-directed Health plans drive change in enrollees’ health care behavior. Journal of Health Affairs, 27(4), 1120-1131.

Bolch, M. (2012). Reality drives change in health care delivery. Journal of financial executive, p.37-39.

Tobarrok, A. (2009). Consumer Driven Health Care plans. Journal of Marginal Revolution, pp. 1-3.

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