A consumer driven health plan (CDHP) is a unique type of insurance designed to give you more control over managing your healthcare expenses. It works differently from traditional health insurance plans, giving you more options and opportunities to save. If you're considering enrolling in a CDHP, here are a few things you need to know. If you would like to know about consumer driven health plan, visit this website.

CDHP Basics

First things first, how does a CDHP work? A CDHP is a high-deductible plan where pre-tax dollars cover a part of your healthcare services. While the deductible is higher than other plans, it comes with the added perk of establishing a health savings account (HSA).

With a CDHP, you can contribute to the tax-advantaged HSA to pay for qualifying healthcare expenses. That can include everything from doctor's visits to dental and vision. These HSAs have all the same perks as an individual HSA. That means you can bring it with you even if you change employers or move across the country.

Understanding CDHP Deductibles

Deductible amounts can vary from one CDHP to the next. However, they're typically higher than other types of plans. Furthermore, you might have the option to have family coverage and individual coverage. If your plan covers dependents, you must meet the family deductible before the CDHP options become available.

These plans also come with an out-of-pocket maximum. This amount protects you from the high costs of a significant illness or injury. It refers to how much you will have to pay for covered services in a plan year.

In-Network and Out-of-Network Providers

CDHPs usually offer more flexibility in terms of providers. The plan covers 100 percent of in-network preventive care services. For everything else, the plan will cover a portion of eligible expenses after you meet your deductible.

Under a consumer driven health plan, you can access in-network and out-of-network providers. You may receive coverage for both, but the amount is usually higher for in-network providers.

Is a CDHP Right for You?

A CDHP can be an excellent plan for those who want more control over healthcare spending. It's less strict than the alternatives, providing you with the flexibility you need to get healthcare on your terms.

Read a similar article about premium only plans here at this page.