Consumer-Driven Healthcare: Information, Incentives, Enrollment, and Implications for National Health Expenditures

Paul Hughes-Cromwick (), Sarah Root () and Charles Roehrig ()
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Paul Hughes-Cromwick: Health Solutions, Altarum Institute, Ann Arbor, MI, 48105, USA.
Sarah Root: College of Engineering, University of Arkansas, Fayetteville, AR, 19104, USA.
Charles Roehrig: Health Solutions, Altarum Institute, Ann Arbor, MI, 48105, USA.

Business Economics, 2007, vol. 42, issue 2, 43-57

Abstract: We highlight the importance of information for consumerdriven healthcare (CDHC), describe barriers, display data on adoption rates and product features, and use a new health modeling approach to investigate the potential impact on national healthcare expenditures. We conclude with an assessment of the prospects for CDHC as a revolution of information, competition, and market orientation; and we discuss potential pitfalls, including concern regarding vulnerable populations. While the jury is out on the ultimate effects, enrollment in CDHC programs—while still small—is growing rapidly; utilization and costs for subscribers appear to be moderating; and creative benefit structures emphasize health promotion alongside previously unseen cost consciousness.Business Economics (2007) 42, 43–57; doi:10.2145/20070204

Date: 2007
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