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Home » Business And Finance Articles » Consumer Directed Health Plans

Consumer Directed Health Plans

Most of you have heard about "consumer directed health plans". The Bush administration has been a strong supporter of this concept as a way to get a handle on soaring healthcare costs. The recent inaugeration of Mr. Bush signals that consumer directed health plans will increasingly make up a larger percentage of group medical plans over the next several years. In the past, consumer directed plan designs have taken on many forms: Medical Savings Accounts (MSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs).

Many experts consider HRAs and HSAs to be the first generation of viable consumer directed health care products. HRAs are typically paired with a high-deductible health plan and are employer-funded Section 105 defined contribution plans. HSAs are the latest version of consumer directed health care plans. The core components of HSAs include a high deductible insurance product and a cash spending account. HSAs combine the pre-tax treatment of a FSA, the portability and roll-over characteristics of a 401(k), and the tax-free distributions of a Roth IRA.

One of the main goals of any consumer directed health plan should be to get the consumer more involved in both the cost and statistical outcomes of certain healthcare procedures. Informed healthcare consumers will make wise healthcare decisions and typically these decisions will result in both lower costs and improved quality.

Although the advantages of HRAs and HSAs can be substantial, employers will want to do their homework prior to setting them up. Effective implementation will require a clear understanding of the consumer directed healthcare plan that best fits your organization as well as the administrative requirements. Employee education will be essential. Companies will also need to look into how the creation of a HSA or HRA may affect their HIPAA medical privacy compliance requirements.

Just like most endeavors, the successful implementation of a HSA or HRA will greatly depend on how much research your organization does on the pro's and con's of each alternative. The type of consumer directed health plan that best fits your company will depend on a combination of your corporate structure as well as the overall objectives of your group health insurance plan.

Although consumer directed healthcare plans are becoming very familiar to human resource managers and other benefit professionals, remember that your employees and their dependents will need a substantial amount of education and communication.

And here is another random article you might be interested in...

Get Organised Before It's Too Late

Last year I attended a presentation from Parenting Expert and well-known author, Stephen Biddulph on "Raising Boys". As I have an 11 year old son, I was interested to hear what Stephen had to say. In fact, so were the other 800 other parents in the room!

The key point that I picked up on was that boys from the age of 6 -14 really need 'time' with their dads. That is the most influential period in their lives when they bond with him. And the type of time they need is not all thrown into a once a week or month block or some exotic holiday once a year, they need to spend time with their sons on a regular basis. Otherwise how can you build a strong and stable relationship?

For the single mums reading this, don't despair. If you are estranged from your partner and bringing up your son is your responsibility, having a positive male role model in his life ie. uncle, brother, grandfather teacher, tennis coach etc. will work as well.

What's happening in our society in the chase for the almighty dollar and in many instances the big ego, our relationships are breaking down. People are totally dominated by their work and have little energy to invest in themselves and their families.

Planning Personal Time

It's very interesting to note that every client I have coached ... male or female, whether they are the business owner, director, executive or whatever title they hold, all have the same common goal... they want more time for their personal life.

They do not want to start work at 7.30 a.m. and return home at 7.00 p.m. They are committed and enjoy what they do, however they are not prepared to sacrifice their own relationships and wellbeing anymore. THE PRICE IS NOT WORTH IT!

You Can Turn Your Life Around

And do you know what the three key things you need to do to turn your life around? Learn to say 'no', how to manage your time and then take action.

That's right. Everyone tells you how busy and how little time they have, yet most people do nothing to learn the skills that will have a dramatic impact on their work and personal lives.

You have to plan time to get things done. Do you want to spend more time with your family? Do you know how to plan for it? How much time do you spend working? How much time do you invest in yourself to learn how to be more effective? Are you hoping that one day, work will ease off and then you can spend more time with your family? Do you really need a bigger house, nicer car or overseas holiday? Will that improve your relationships? Do you think that you'll (hopefully) stumble on the secrets to getting more time back in your life? If that's the way you live your life, your kids will probably be all grown up and not really need you.

Cats in the Cradle

For those of you old enough to remember, Cat Stevens recorded a song called "Cats in the Cradle". It was about a young boy whose Dad was always busy working. He never seemed to be available when his son wanted to be with him. Over the years this continued until the boy became an adult. By then his Dad had retired and had time on his hands, however his son had now become too busy to see his Dad. He too was working and had kids. The tables had turned. All of a sudden the Dad realised what he had done. He was too busy caught up in his work and missed out on his son growing up.

The Final Word

For those of you who have managed to maintain a good balance in your life, congratulations. No doubt you are happier, healthier and more fulfilled. For the rest of you who are unhappy, unhealthy and unfulfilled, then you need to take action if you are serious about wanting to make changes. Do it, because nothing changes if nothing changes!