Consumer-Directed Health Care: A Panacea Or the Wrong Prescription‪?‬

Consumerism is the latest big idea for stemming rising health care costs. Proponents argue that patients must become price-conscious shoppers to put the brakes on health care spending. Although consumer-directed health care, as it's sometimes called, has taken several forms, most interest focuses on combining a high-deductible health plan (HDHP) with a tax-favored health savings account (HSA) to cover out-of-pocket expenses. The theory is that Americans have more health insurance than they need and are therefore insensitive to the true costs of care. Asking families to pay more out of pocket, the reasoning goes, will create more prudent consumers of health care, driving down health care costs and improving the quality of care as providers compete for patients.