What concern is associated with the development of Consumer Directed Health Plans (CDHPs)?

The concern associated with Consumer Directed Health Plans (CDHPs) that is highlighted is the greater risk selection, favoring healthier enrollees. CDHPs often include high deductibles and Health Savings Accounts (HSAs) that empower consumers to make more informed choices about their healthcare. While this structure encourages engagement among consumers who are motivated to manage costs, it inadvertently may lead to a scenario where healthier individuals opt for these plans, while those with higher healthcare needs might seek more comprehensive insurance options.

This phenomenon, known as adverse selection, can affect the overall risk pool and stability of the plan. A risk pool that skews towards healthier participants may struggle to cover the costs of those who require more frequent or expensive care, leading to higher premiums over time or an unsustainable financial model. Understanding this dynamic is crucial in evaluating the long-term viability of CDHPs and addressing the broader implications of healthcare access and equity among different populations.