What does CDHP stand for in healthcare?

CDHP stands for Consumer Directed Health Plan. This term refers to health insurance plans that give consumers greater control over how their healthcare dollars are spent, typically through mechanisms such as high deductibles and Health Savings Accounts (HSAs). The concept behind CDHPs is to encourage consumers to be more engaged and informed about their healthcare choices, leading to potentially lower costs and increased responsibility for health-related decisions.

Consumer Directed Health Plans are designed to empower patients to take charge of their health care finances by allowing them to save money tax-free and use it for qualified medical expenses. This approach is intended to promote cost transparency, as patients become more aware of the costs associated with various medical services and procedures.

In contrast, other options like Comprehensive Direct Health Program, Coverage Directed Health Plan, and Capital Deduction Health Plan do not reflect established terminologies used in the healthcare field and do not encapsulate the principles of consumer engagement and financial responsibility that CDHP embodies. By understanding the definition and purpose of Consumer Directed Health Plans, one can appreciate their role in the broader context of health care management and the shift towards patient-centered care.