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The Economics of health care

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The Economics of health care essay assignment

CDHPs

A new type of third-party-reimbursement healthcare payment plan is emerging in the United States. CDHPs strive to control costs and improve quality of care by requiring consumers to take control of their own healthcare decisions. Consumers decide how they want to spend their healthcare dollars, depending on what is important to them. CDHPs are geared to encourage participants to enroll in some type of wellness program and improve their lifestyles. Specific types of CDHPs are health reimbursement accounts (HRA), flexible spending accounts (FSA), and health savings accounts (HSA).

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However, there are concerns about CDHPs. The consumer may neither understand nor have the education and the tools to manage his or her own healthcare appropriately. This may have long-term ramifications on the whole healthcare system and whether CDHPs can be successful for the consumer, the employer, the physician, and the healthcare facilities, as well as the insurers. Answer the following questions in regard to this development:

  • Are CDHPs more geared toward the healthier and younger population?
  • Are they effective for patients with chronic illnesses?
  • Will they discourage the use of preventative care and cause increased healthcare costs in the future?

After examining the above questions in your analysis, work around the following instructions and create a 8- to 10-page Microsft Word document:

  • Summarize the history of when, how, and why CDHPs were developed.
  • Explain HSA, HRA, and FSA with examples.
  • Examine different segments of the population. Describe which socioeconomic group is likely to benefit the most from CDHPs.
  • Explain the types of incentives to providers for efficiency in the delivery of healthcare services. Explain who bears the financial risk—the provider, the patient, or the CDHP.
  • Offer your recommendations for patients considering a CDHP, including which types are appropriate for which patients. Include your recommendations for each, to accept or decline, and also include your rationale behind such recommendations.

Support your responses with examples.

Cite any sources in APA format.

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