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CDHC - Essay Example

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Essay The global economic recession and the rising cuts in Medicaid policies due to lack of federal funding has made healthcare unaffordable to a vast group of people especially the elder population. In families where there is strict budgeting or who lack sufficient resources, healthcare remains an elusive entity…
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Proponents of the system have claimed that the high-deductibles involved and the health savings account plan of the CDHC system are important factors for its success (Gould, 2006). Providing better service and care for those who cannot afford healthcare should be promoted by increasing the taxes of those with a higher income and thereby make such consumer-driven healthcare initiatives care for the welfare of the needy people (Rodwin, 2003). The consumer-directed health care initiatives were introduced as a means to provide healthcare benefits to the employees within an organization. Initially by this plan employers funded the health reimbursement accounts (HRA) of their employees and hence they decided on what medical expenses can be covered by the plan and whether the funds could be carried over to the next year. However, following the passage of the Medicare Modernization Act in the year 2003, health savings accounts (HSA) were created by which both the employees and their employers contributed to the account and federal standards determined which medical expense was eligible for claim. The funds in the account could be rolled over to the next year and the employee retains the funds in case of job shifts or after retirement. ... Read More
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