Which of the following describes a Consumer Driven Health Plan (CDHP)?

A Consumer Driven Health Plan (CDHP) is characterized by its combination of a high-deductible health insurance plan with a tax-advantaged savings account. This design allows consumers to take greater responsibility for their healthcare spending while encouraging them to make more informed and cost-effective health decisions.

In a CDHP, the high-deductible plan means that individuals may have to pay a significant portion of their initial healthcare costs out-of-pocket before the insurance starts covering expenses. The savings account, often referred to as a Health Savings Account (HSA) or Health Reimbursement Account (HRA), enables consumers to set aside money tax-free specifically for eligible medical expenses. This structure not only helps mitigate the financial burden during the deductible period but also empowers individuals to manage their health finances more actively.

Overall, the aim of a CDHP is to encourage cost-conscious behavior in healthcare consumption, thereby fostering a more engaged approach to personal health management.