CDHP and You
One of the many benefits of CDHP is the lower-premium, higher-front-end deductible. Although most people shy away from a higher deductible at first, assuming they will pay more out-of-pocket for their healthcare, a healthcare account changes that perception by paying a substantial portion of those out-of-pocket expenses.
In addition to lowering premiums, higher deductibles create transparency of the actual cost of healthcare services. Each time you access the healthcare system, you receive an explanation of benefits (EOB). The EOB statement lists various details and costs of healthcare services received and indicates who is responsible for payment (you or the insurer). One area of healthcare in which this is very helpful is the emergency room—it is one of the most over-used areas of healthcare because it is often used to treat non-emergency conditions. Why? What most people don't know is that a visit to the emergency room does not cost $100, which is a typical co-pay on a traditional managed care plan—but rather, it can cost hundreds and sometimes thousands of dollars. An EOB shows exactly what services were provided and how much each of them costs—and armed with that information and the inherent incentives built into the healthcare account, perhaps you might consider a less costly treatment option. Information and knowledge strengthen your healthcare confidence, get you better care, and save you money.