Consumer-Oriented Strategies to Improve Quality of Healthcare Essay
Many of the available consumer-driven healthcare plans (whether they are spending-account or tiered-model plans) are now categorized as high-deductible health plans. These plans are currently the fastest growing plan options on the market, growing over 25% in the past decade. Although they are low in cost, members’ willingness to access care in a high-deductible environment have brought about valid quality of care and access to care concerns.
What are the advantages and disadvantages of a high-deductible/consumer-driven health plan? How would you best explain these points to your employees if your organization were changing to this type of coverage? Explain these items in a 200-word peer-reviewed source supported analysis (vs. posting opinions). Remember to use in-text citations in your post.
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Consumer-Oriented Strategies to Improve Quality of Healthcare
A consumer-directed plan refers to insurance strategies that, in one way or another, encourage consumer involvement in decisions concerning their healthcare needs. The majority of consumer-directed healthcare plans share the concept of a high deductible health plan in which the consumer is responsible for medical bills up to a relatively high deductible, generally at least $1,000 per annum and $2,000 per annum in some cases (Fontinelle, 2019). Most insurance purchasers have diverted their interests to consumer-driven plans to improve healthcare quality amidst the continually rising healthcare costs and advocacy for quality healthcare. The programs place higher financial responsibility on the client for better decision-making, accompanied by initiatives to provide quality services with education on their illnesses. The benefits include access to quality information concerning health care to enable them to make informed decisions for their conditions.
Most Americans refer to the high deductible plan as a lifesaver. The trend has grown tremendously over the past decade and portrays no signs of fading as many companies are also offering health insurance plans to their employees (Ginsburg et al., 2016). The program comes with a lower monthly premium compared to a similar insurance plan with lower deductibles. Individuals who do not project the high healthcare cost in a year can minimize their premiums and opt for a highly-deductible health plan and therefore save money. Also, the technique enables its members to contribute to their health savings account. If they fall under the 24% federal tax bracket and incur $3,000 for healthcare expenses, they can utilize the HAS for healthcare expenses with pre-tax dollars. If they use the post-tax dollars, the $3,000 in health expenses could cost up to $4,000. The lower deductible pan, also known as non-HDHP, can allow an individual to pay for $2,500 for the $3,000 healthcare exp...