Types and rates of health care insurance coverage have changed considerably in the last 50 - 60 years. From the 1960s through the 1980s, the principal type of group health insurance was indemnity insurance. Its benefit design required covered individuals to pay a portion of provider billed charges after meeting an annual deductible.
From the 1980s forward, indemnity coverage was replaced by managed care. Health care providers (physicians and hospitals, etc.) were required to accept and share in the financial risk. It also was more precise in defining the benefits that were covered and introduced wellness and prevention programs.
In the early 2000's employers began using Consumer Directed Health Plans for both cost-savings and cost-containment. Basically, they are an approach that includes employees (the consumers) in making decisions about their health care.
The purpose of this course is two-fold:
- To study what Consumer Directed Health Plans are, how they work, and the pros and cons of owning them; and
- To explore their perspective marketplaces