Consumer-Directed Health Plans

Consumer-Directed Health Plans (CDHPs) are health insurance options that combine a lower premium with a medical savings account, like an HSA or HRA. They give enrollees more control over their healthcare spending by allowing them to choose when and how to use their funds for medical expenses. Because of the higher deductible, members often pay less each month but are responsible for more out-of-pocket costs upfront. CDHPs encourage consumers to be more mindful of their healthcare choices and costs, promoting cost-awareness while providing financial protection for significant medical needs.