Cdp Case Study

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Pages: 3

Another important feature of CDHPs is a dependence on Internet tools to assist employees manage their health care expenses as well as options for treatment (Gabel, Lo Sasso, and Rice 2002). Typically, three types of tools are found in CDHPs. First, there are tools intended for aiding enrollees track expenditures in their Personal Care Accounts, analogous to tools utilized in online banking. Here, enrollees are able to access their accounts through the plan's website in addition to monitoring any expenditures charged against the account. The idea is that, since enrollees are able to see expenditures accrue, as well as see the prices attached to different services as they are charged against the account, enrollees will become more conscious about the cost in their buying decisions. this idea is further reinforced through the ability to roll over unspent dollars in the Personal Care Account into the following year. Second, there are tools meant for assisting enrollees shop for medical care, including price lists and comparisons of physician qualifications as well as hospital performance measures. Third, CDHP websites provide links to other Internet educational resources regarding disease management, health promotion, and general medical information.

Compare the difference between a managed care plan (HMO or PPO) and a CDHP plan in terms of
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A PPO plan gives a person greater freedom by allowing them to visit both in-network as well as out-of-network practitioners, however it also comes with higher premiums. Typically, a person has to pay a co-insurance or co-pay when visiting their doctor or undergoing a medical procedure, however the person gets to benefit from the discounted rates that come with managed care plans. When one attains a certain deductible limit, the insurance plan caters for their remaining medical costs for the year (Emily,