Determining the feasibility of consumer-directed products
As employers and insurers explore new consumer-directed products, it is understood that unless these new products include the right incentives and consumer educational tools to affect the high utilization patterns of some consumers, the total cost of providing health care benefits is unlikely to change. Executives are asking, how will consumer-directed products evolve, and how will these products impact employees, members, and our bottom line in the short and long-term? The Ingenix CDHP Model can help you answer such questions with authority.
Four primary objectives
- Assist in the design of a HRA consumer-directed product that will best fit the needs of the client
- Gain a better understanding of how the proposed plan’s costs are distributed between the insured and HRA component of an HRA product
- Help you understand the cost-sharing impact through a comparison of employee out-of-pocket expenses under an existing plan versus the new HRA product
- Evaluate the impact of selection by modeling up to three alternative product offerings in addition to the HRA product
Flexible modeling tool
The Ingenix Consumer-directed Health Plan Model has the flexibility to evaluate the cost of an HRA product based on a variety of pricing variables and during a three-year period. The model allows you to evaluate the cost of an HRA product by generating an output number representing the ratio of the projected costs under the proposed HRA product to the cost of an established “baseline” health insurance product (i.e., PPO or POS).
