The Truth About Consumer-Directed Health Plans

The so-called consumer-directed health (CDH) market plunges its roots deeper into the health insurance industry as US employers continue to fight the rising costs of healthcare and more consumers find themselves in unfamiliar territory. Once referred to as a niche, this market is reaching critical mass, capturing a double-digit share of all non-elderly commercially insured consumers nationally. Health savings accounts (HSAs) in particular are growing more quickly than any other type of health spending account, with more than 6 million accounts holding more than $8 billion in assets. In this highly fragmented and competitive market that is primed for a shakeout, health plan marketers need to get back to basics and focus on product simplicity and consumer education.