What is a common risk associated with Consumer Directed Health Plans for consumers?

A common risk associated with Consumer Directed Health Plans (CDHPs) is higher copayments and deductibles. These plans are designed to give consumers more control over their healthcare spending, often encouraging them to make more cost-conscious decisions. However, this structure typically results in increased upfront costs, meaning that individuals may have to pay more out-of-pocket before insurance coverage kicks in.

This higher financial burden can be a significant deterrent for consumers, especially those who may not have substantial savings to draw upon for unexpected medical expenses. As a result, while CDHPs may offer lower premiums in some cases, the potential for higher out-of-pocket costs creates a real risk that could lead to financial strain on consumers, particularly for those needing regular medical care.