FAQ

How consumer-directed health plans work – Benefits

how consumer-directed health plans work

If good health or good luck doesn’t require you to visit the doctor often, choosing a consumer-directed health plan (CDHP) can save you money and give you flexibility in how you spend and save for your health care.

While CDHPS provide coverage similar to traditional plans, they have specific eligibility requirements and other features that make them unique. Before you sign up for a CDHP plan, learn how it works and if it’s right for you and your family.

Reading: What does cdhp mean in health insurance

eligibility and enrollment

Due to the unique tax advantages of health savings accounts (hsas), which are governed by the internal revenue service (irs), certain circumstances prevent you from enrolling in a cdhp. you cannot enroll in a cdhp if:

  • you or your spouse are enrolled in a medical flexible spending arrangement (fsa), even if you are not covering your spouse in your health plan
  • claimed as a dependent on someone else’s tax return
  • enrolled in medicaid, medicare (part a or b), or tricare
  • enrolled in another comprehensive health plan
  • you or your spouse are enrolled in a voluntary employee benefit association (veba) account
  • If none of these apply to you, then you can use the step-by-step instructions for enrolling in benefits on the Integrated Service Center website. contact the integrated service center if you have questions.

    is a cdhp right for me?

    compared to pebb’s other plans, cdhps cover the same basic health care services and have a similar benefit structure. Like other plans, you pay coinsurance for services, your care costs less when you use network providers, and you get coverage for common services like vision and prescriptions.

    cdhps differs from the other plans in two important ways: the hsa and high deductible, low premium cost balance.

    while cdhp’s have the lowest premium cost, by selecting a cdhp you take on greater financial risk: a much higher deductible and out-of-pocket limit. If you get sick or injured and need major medical care, you’ll pay much more out of pocket than you would with a traditional plan.

    The potential for higher out-of-pocket costs may not be a problem if you have money saved, either in the HSA or elsewhere, to cover those costs.

    See also: How much is insurance under the affordable care act

    If you have money saved, a CDHP may be right for you. also cdhps works well for people who:

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