What type of health plan combines a high deductible with a tax-advantaged account?

A Consumer Directed Health Plan is designed to empower individuals to make informed decisions about their healthcare by combining a high deductible health insurance plan with a tax-advantaged savings or spending account, such as a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA).

The high deductible typically requires patients to pay a larger portion of their healthcare expenses upfront, which encourages more thoughtful decision-making regarding their care. The tax-advantaged accounts linked to these plans allow individuals to save money tax-free for healthcare expenses, providing a financial incentive to manage their health care costs effectively.

This model aligns with the goal of increased consumer involvement in healthcare spending decisions, offering both flexibility and potential tax benefits, which are a significant factor for many participants. This unique structure serves to foster a greater awareness of healthcare costs and personal responsibility, making it distinct from other types of health plans.