What is Consumer Based Health Care


What is Consumer Based Health Care

Not everyone will always be healthy, at one time he will experience pain. And this healing requires a large or small cost, depending on the pain is severe or not.
With the existence of health insurance at least people will not be burdened anymore which is so heavy about the cost.


Increased health care costs have made better quality medical facilities out of reach of many people in the United States. Plus, rising health insurance premiums exacerbate the health care crisis. Because most employees are protected by employers who are given health insurance, an increase in the cost of health insurance also has a negative effect on the labor market.

Health care reform is not expected to solve all problems. In recent years, consumer-driven health care has quickly gained significance, and some people see this approach as one solution to resolving the health care crisis.

Consumer-driven health care is an insurance and health management system that gives consumers more control over the use of their health care money. This health care system allows employers to create accounts for employees, so that they can pay for their health care without involving third parties. 

Consumers have more power to make direct choices regarding their health care plans. In addition, they can become more educated about their choices, and also the economic purchasing power in their hands.

Usually, consumer-driven health care plans include a Health Care Replacement Account (HCRA); Medical Savings Account (MSA); Health Savings Account (HSAs); Flexible Spending Accounts (FSA). However, this plan has its own benefits and disadvantages, and people need to evaluate carefully before choosing the right consumer-driven health plan.


HCRA allows employees to use employer contributions only for medical expenses or to pay health insurance premiums, while the FSA allows employees to substantially reduce their income tax obligations through salary deductions. 

Also, they can donate a portion of their salary to a health care cost account. MSA allows rollovers from year to year, and is controlled by individuals. He pays for ordinary health care services. In HSAs, both employees and employers can contribute in the same year; also accounts can be formed by individuals, or can be sponsored by the employer.


Now that is the benefit of having Consumer Based Health Care that can provide health services for its members
Source: articlesFactory.com

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