Consumer-directed health plans: new evidence on spending and utilization.
This study examined three-year spending and utilization trends associated with enrollment in a consumer-directed health plan (CDHP) offered by a large employer alongside a preferred provider organization (PPO) and a point-of-service (POS) plan. The CDHP cohort spent considerably more money on hospital care than the POS cohort. Results found evidence of pent-up demand in the CDHP, but not enough to explain the spending trend. Lower prescription drug spending--where the CDHP modestly controlled allowable costs--was associated with less hospital and emergency room use in following periods. Findings suggest the CDHP had too little out-of-pocket cost-sharing to control medical spending.
Feldman
Roger
R
Division of Health Policy and Management, School of Public Health, University of Minnesota, 420 Delaware St., S.E., Box 729, Minneapolis, MN 55455-0381, USA. feldm002@umn.edu
Parente
Stephen T
ST
Christianson
Jon B
JB
D002755:Choice Behavior; D015331:Cohort Studies; D005382:Financing, Personal; D006264:Health Benefit Plans, Employee / Q000191:economics* / Q000458:organization & administration; D017048:Health Care Costs; D006296:Health Services / Q000191:economics* / Q000706:statistics & numerical data*; D006801:Humans; D017059:Models, Econometric; D011243:Preferred Provider Organizations / Q000191:economics / Q000706:statistics & numerical data