CDH vs. “Traditional” Insurance Plans
CDHPs typically have a healthcare account that is intended to provide you with greater control over your healthcare expenses and your healthcare spending. This account lets you choose what to spend your healthcare dollars on and saved or unspent dollars in the account can accumulate over time. CDH plans often require a high deductible health plan for participation.
CDH plans are designed more like your auto insurance policies. The higher the deductible you choose, the lower your monthly premium. With a CDH plan, as a consumer, you are willing to take more risk and pay out of pocket for minor expenses, if they should occur, and depend on the insurance for major expenses.
This reduces your monthly premium to the insurance company. Most high-deductible plans do cover preventive care coverage before reaching the deductible. This is to encourage consumers to get their routine care to prevent major and more costly ailments in the future.