consumer-driven healthcare
Consumer-driven healthcare (CDHC) refers to third-tier health insurance plans that allow members to use health savings accounts (HSAs), Health Reimbursement Accounts (HRAs), or similar medical payment products to pay routine healthcare expenses directly, while a high-deductible health plan (HDHP) protects them from catastrophic medical expenses.
High-deductible policies cost less, but the member pays medical claims using a pre-funded spending account. If the balance on this pre-funded account runs out, the member then pays claims similar to payment under a regular deductible. Members keep any unused balance or rollover at the end of the year to increase future balances, or to invest for future expenses. CDHC plans are subject to the provisions of the Affordable Care Act, which mandates that routine or health maintenance claims must be covered with no cost-sharing (copayments, co-insurance, or deductibles) to the patient.