CDHPs Assignment Example | Topics and Well Written Essays - 1750 words

CDHPs - Assignment Example It is in the same year that health reimbursement arrangements (HRA) begun. Then Health Savings Account (HSA) closely followed HRAs after the approval of the 2003 Modernization Act. This Act allowed individuals with a considerable amount of deductible health contrive to contribute towards HSAs. The main reason for coming up with CDHPs was to empower employees to make informed decisions about health care (â€Å"FAQ - What are Consumer Directed Health Plans (CDHPs),† n.d.). Since 2001, CDHPs have assumed an upward trend as consumers have appreciated it as a financial friendly and cost- restraint system. Studies show that in 2013 only, nearly 23% of employers having workers ranging from 15 to 400 and employers with over 500 workers proposed the use of either HSA or HRA health scheme. Studies affirm that CDHPs do not downgrade preventive services and encourages younger healthier populations since most subscribers are young families. Today not only individuals but also business companies have embraced CDHPs as a way of handling their health related issues. There has been a rise for contributions in both HSA and HRAs 2013 having an approximated amount of $ 23.8 billion Collins, 2007). This was a significant rise from $18 billion in 2012. The number of account holders rose from 11.7 million in 2012 to 11.8 million in 2013. Although there are speculations about the ineffectiveness of CDHPs, it stands undisputed that this type of strategy has an amazing ability to make member to take actively part in their health care management. CDHPs readily offer necessary support to members in terms of materials and skills. Feeling that the individual may not be able to understand or manage his or her finances when enrolled in CDHPs is inappropriate. (Greene, Peters, Mertz, & Hibbard, 2008)A research conducted reveal that CDHP members are aware of their roles and make good use of the available information