About Glenn Mercer & Associates

Consumer Driven Health Care

What is consumer-driven health care (CDHC)? It is a participatory medical plan where the employee is more directly involved in defining the benefit. The exposure to loss is not open-ended; however, the employer still establishes the plan parameters by determining the high-deductible benefit design and the savings account sponsorship commitment.

An acute illness may be described as short-lived. The episode usually lasts less than 30 days. Current PPO benefit models with low copayments for office visits and drugs encourage over utilization in this high frequency area. The consumer approach takes a portion of the premium normally given to this frequency activity and sets it aside for the member in a savings account. When a condition is not of a chronic or critical nature, the employee can exercise more discretion when using his own funds. Better buying decisions can be made. Unlike a traditional medical plan, value can only be obtained when a claim is filed. It is use-it-or-lose-it. A consumer-driven plan affords everyone value, regardless of whether a claim is filed. In others words, it is use-it-or-keep-it.

For a quotation or to apply for individual medical coverage, please visit the page "Contact Us".