Employee 101

Consumer-Directed Health Plans (CDHP) is a fancy term for a simple concept:

If consumers take a more direct role in their healthcare decisions and costs, healthcare costs can be contained and individual health can improve.

CDHP plans are built on several components, with the core elements including:

A medical plan that features a high deductible health plan (HDHP). HDHP’s may have a higher deductible than traditional health insurance, but they also offer full coverage on some preventive care services (e.g. colonoscopy, mammogram, etc.). The health coverage also protects you and your family with an out-of-pocket maximum limit for the year. Once you hit that limit, insurance pays 100% of costs.

A financial Account, that helps you pay for your deductibles, copayments, and coinsurance. The account can be a health reimbursement arrangement (HRA) or a health savings account (HSA). Your employer contributes the funds to an HRA. You contribute funds to an HSA (your employer may opt to also contribute funds to your HSA).

As a member, you can use the funds from your financial account at your discretion to pay for healthcare services (funds must be used on eligible expenses as defined by the IRS and/or your employer).

Access to Support Information, including benefit and account information, health management programs and resources, and additional support that helps manage expenses.

The program also includes comprehensive health and wellness, disease management, and case management programs to support you in making healthy lifestyle decisions and keeping existing conditions under control. Also included are special health information resources like a 24- hour nurse on call, health tools and calculators on mercyhealthplans.com.

Our CDHP plans give you the tools you need to be more aware of actual healthcare costs, and to explore alternative healthcare options that may be less costly. They are also designed to educate and empower you and your family. This combination of increased responsibility and empowerment will mean a healthy life and a healthier impact on your pocketbook.