Abstract
This study examined three-year spending and utilization trends associated with enrollment in a consumer-directed health plan (CDHP) offered by a large employer alongside a preferred provider organization (PPO) and a point-of-service (POS) plan. The CDHP cohort spent considerably more money on hospital care than the POS cohort. Results found evidence of pent-up demand in the CDHP, but not enough to explain the spending trend. Lower prescription drug spending - where the CDHP modestly controlled allowable costs - was associated with less hospital and emergency room use in following periods. Findings suggest the CDHP had too little out-of-pocket cost-sharing to control medical spending.
Original language | English (US) |
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Pages (from-to) | 26-40 |
Number of pages | 15 |
Journal | Inquiry |
Volume | 44 |
Issue number | 1 |
DOIs | |
State | Published - 2007 |