Which feature characterizes a consumer-directed health plan (CDHP)?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A consumer-directed health plan couples a high-deductible health plan with a consumer-controlled, tax-advantaged account — an HSA, HRA, or FSA — used to pay qualified medical expenses before the deductible is met. The design philosophy is to make consumers cost-conscious shoppers of health care by giving them visibility into, and control over, the first dollars of spending while preserving catastrophic protection once the deductible is exhausted. The account component, not the network or the payer, is what defines the consumer-directed model, and it is the element that distinguishes a CDHP from traditional managed care products.
Why the other options are wrong
- B) A low-deductible gatekeeper model describes a traditional HMO-style managed care plan, not a consumer-directed design, which by definition starts with a high deductible.
- C) CDHPs are private insurance products sold by commercial carriers; government programs are a separate category of coverage, so this answer describes the wrong payer entirely.
- D) A CDHP still covers the full spectrum of covered medical expenses after the deductible; it is not a catastrophic-only policy, so this answer mistakes the deductible for the benefit ceiling.
Memory hook
CDHP = you spend the first dollars (HDHP) from a savings account you control — skin in the game, tax-free.