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

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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.)

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

Suggested Citation

  • Paul Hughes-Cromwick & Sarah Root & Charles Roehrig, 2007. "Consumer-Driven Healthcare: Information, Incentives, Enrollment, and Implications for National Health Expenditures," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 42(2), pages 43-57, April.
    • Handle: RePEc:pal:buseco:v:42:y:2007:i:2:p:43-57
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