Correlation does not imply causation, but the unreported correlations in a recent survey of consumer directed health care (CDHC) participants tell a very different story than the touted results, as Grace-Marie Turner from the Galen Institute points out. Some highlights:

  • Individuals in CDHC plans are more cost-conscious in their health care decision-making
  • They are significantly less likely to report avoiding or delaying needed care
  • They reported using health services at rates similar to those in comprehensive health plans
  • People in CDHC plans are more, or at least as, likely to get their blood pressure or cholesterol checked, have a dental exam, or receive a mammogram, pap test, or colon screening
  • Participation in consumer-directed plans was higher among those aged 45-64 than in comprehensive health plans
  • People in CDHC plans are less likely to be obese or to smoke and are more likely to get regular exercise
  • The number of people with comprehensive coverage in large firms is declining while the number of people in consumer-directed plans is increasing
  • The overwhelming reason that people pick CDHC plans is that they are less expensive than other plans and that they have an opportunity to save money in their accounts for future needs

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  • In 2007, there was a significant increase in the share of CDHC plan enrollees who were extremely or very satisfied with the quality of care they received and the quality of their health plan, and who would recommend their plan to a friend or co-worker

On a related note, Cato’s Michael Cannon has a new paper on large health savings accounts (HSAs), in which he argues they could prove a palatable step toward tax neutrality in health care.