Consumer-Driven Health Care (INSCE033FL2)

Types and rates of healthcare insurance coverage have changed considerably over the last 50-60 years.  From the 1960s through the 1980s, the principal type of group health insurance was indemnity insurance. Its benefit design required covered individuals to pay a portion of the provider-billed charges after meeting an annual deductible.

From the 1980s forward, indemnity coverage was replaced by managed care.  Healthcare providers (physicians, hospitals, etc.) were required to accept and share in the financial risk. Managed care is also more precise in defining the benefits that are covered, and it introduced wellness and prevention programs.

In the early 2000s, employers began using Consumer-Directed Health Plans for both cost savings and cost containment. Essentially, it is an approach that involves employees (the consumers) in making decisions about their healthcare.

The purpose of this course is twofold:

1. To study what Consumer Directed Health Plans are, how they work, and the pros and cons of owning them; and
2. To explore their perspective on marketplaces.