Consumer-Driven Health Care

A 2012 survey found that 90% of employers don’t have plans to reduce their employee benefits. If you are in the majority but are struggling to find ways to continue offering healthcare insurance, you might be interested in a consumer-driven healthcare plan (CDHP). These health plans typically come with a high deductible but are more affordable than traditional group health plans.

The concept behind them is to encourage policyholders to be more active in healthcare decision-making by giving them more of the financial responsibility for treatment options. CDHP plans are usually associated with employee savings accounts that are dedicated solely for medical costs. A health savings account (HSA) is one funding mechanism that can be paid for by the employee using pre-tax income. The HSA can be supplemented by the employer, but it belongs to the employee and can be carried to another job if the employee leaves your company.

Other savings options include a health reimbursement account (HRA), which is established and funded by the employer, and a flexible savings account (FSA), which is similar to an HSA but can be used with a traditional group health insurance plan as well. Funds in an FSA cannot be rolled over either to another employer or to another plan year. If they aren’t used, they are lost to the employee. The group benefits staff at Nottingham Insurance will help you examine the alternatives available to you.

Consumer-driven health insurance is growing in popularity.

At Nottingham, we are the Trusted Choice for personal insurance, financial services, commercial insurance, and employee benefits for businesses, individuals and families in New Jersey and Pennsylvania, including Mercer County, Monmouth County, Burlington County and Middlesex County, NJ, and Bucks County, PA. We have been serving the region for nearly 100 years and invite you to join the Nottingham Insurance family. Call us at 888.879.3844, email us, or come by and visit us.

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