HCPro.com: Consumer Driven Healthcare

This monthly newsletter is designed to help healthcare organizations respond effectively to the shift in market power, become consumer-centric, and position themselves to become market leaders in the new consumer-driven market.

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August 2008 (Volume 7, Issue 8)	view entire issue

Experts disagree over election's CDHP effect
Opinions vary-sometimes dramatically-on how the election will affect the future of HSAs in particular and CDHPs overall, but there seems to be consensus that, regardless of which party controls Congress and the White House in January 2009, there will be no immediate changes. Booz & Company, based in New York City, recently modeled many of the possible election scenarios and tested them in a strategic simulation exercise to understand the reforms that would likely emerge under each and the implications for various stakeholders.

IRS issues three new sets of HSA guidance
During the past few weeks, the IRS has issued new guidance on HSAs, the most recent being a list of questions and answers (Q&A) addressing assorted issues (Notice 2008-59). Roy Ramthun, president of HSA Consulting Services in Washington, DC, discussed Notices 2008-51 and 2008-52 in a late June Webcast. These two notices clarify the changes made by the Tax Relief and Health Care Act of 2006, which is effective for tax years 2007 and beyond.

Medco analysis: Compliance lower in CDHPs
Are CDHP enrollees so cost-conscious that they aren't buying the medications they need to stay healthy? That's the implication of a new study from Medco in Franklin Lakes, NJ. However, at least one expert on CDHPs raises questions about the nature of this noncompliance. Medco found that CDHP members have significantly lower medication adherence rates when compared to those enrolled in traditional health plans. For Tracy Grunsfeld, vice president of consumer solutions at Medco, the implications are clear.

Legal and planning errors can weaken wellness efforts
Health management programs are becoming increasingly popular components of health benefit designs. And effective health management programs are generally considered critical to the success of a CDHP. Many employers with and without CDHPs are using incentives to motivate employees to participate in these programs, but some are taking punitive steps. However, whether employers offer carrots or sticks, they may risk crossing the sometimes blurry line between legal and illegal under HIPAA and the Americans with Disabilities Act (ADA). And sometimes, they threaten the health of their wellness program.

Other recently-published articles from Consumer Driven Healthcare:

CDH roundup: Healthcare inflation slows, CDHPs grow, and CMS enhances transparency

Online and engaged: Social media crucial to CDH success

New EBRI study questions the value of HSAs as a way for employees to save for retiree health costs

Early follow-up helps drive CDHP/HSA success

More on 2008-59: Expert analyzes guidance

On-site clinics gain popularity, morph into wellness centers

Open enrollment tips to drive CDHP adoption

Legal and planning errors can weaken wellness efforts

Medco analysis: Compliance lower in CDHPs

IRS issues three new sets of HSA guidance

Experts disagree over election’s CDHP effect

Tech tools can drive CDHP enrollment, but face-to-face contact is still crucial to success

From Atlanta to DC, HSA activity abounds; Georgia promotes HSAs, but GAO raises questions-and ire

New FICO-backed tool designed to help hospitals address challenges posed by self-pay and uninsured patients

Consumer diagnostics poised for growth

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