Consumer-driven health plans (CDHP) 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 health care expenses directly, while a high-deductible health plan (HDHP) protects them from catastrophic medical expenses.
High-deductible policies cost less, but the user pays routine medical claims using a pre-funded spending account, often with a special debit card provided by a bank or insurance plan. If the balance on this account runs out, the user then pays claims just like under a regular deductible. Users keep any unused balance or “rollover” at the end of the year to increase future balances, or to invest for future expenses. According to the 2011 UBA National Health Plan Survey employers with fewer than 100 employees are more likely to offer CDHP’s than are larger employers, although CDHP’s are growing in popularity among all employer sizes.