| The escalating health-care cost has made better | | | | better educated about their choices, and also the |
| quality medical facilities beyond the reach of many | | | | economic purchasing power is in their hands. |
| in the United States. Plus, the rising costs of health | | | | Typically, consumer driven health care plans |
| insurance premiums are exacerbating the | | | | include Health Care Reimbursement Account |
| health-care crisis. Since most of the employees | | | | (HCRA); Medical Savings Account (MSA); Health |
| are covered by employers provided heath | | | | Savings Accounts (HSAs); Flexible Spending |
| insurance, the increasing heath insurance cost is | | | | Accounts (FSAs). However, these plans have their |
| also having a negative effect on the labor market. | | | | own benefits and disadvantages, and one need to |
| The heath-care reform is not expected to solve | | | | carefully evaluate before choosing the right |
| all the problems. In recent years, consumer driven | | | | consumer-driven health plan. |
| health care is fast gaining significance, and some | | | | HCRA allow employees to use employer |
| see this approach as one of the solutions to | | | | contributions only for medical expenses or to pay |
| resolve heath-care crisis. | | | | health insurance premiums, while FSAs enable |
| Consumer driven heath care is an insurance and | | | | employees to substantially reduce their income |
| healthcare management system that gives | | | | tax liability via salary reduction. Also, they can |
| consumers more control in the use of their | | | | contribute a part of their salary to a health care |
| health-care money. This health care system allows | | | | expenses account. MSA allows year-to-year |
| employers to create accounts for employees, so | | | | rollovers, and is controlled by the individual. It pays |
| that they can pay for their health care without | | | | for regular health-care services. In HSAs, both |
| involving third parties. Consumers have more | | | | employee and employer can contribute in the |
| power to make direct choices regarding their | | | | same year; also the account can be established |
| health-care plan. In addition, they may become | | | | by an individual, or can be employer sponsored. |