CDHC’s financial implication

Take care: Consumer-driven healthcare (CDHC) could increase your exposure to non-reimbursement.

According to a report in the Nov./Dec. 2005 CDHC Solutions (www.bcsolutionsmag.com), 54 percent of physicians consider managing slow third-party reimbursement as a challenge in maintaining and growing their practices.

This burden on practitioners who serve patients in a consumer-directed health plan (CDHP) could increase dramatically unless you have the proper protections in place.

The reason: With CDHP, you will look to patients, not insurance companies, for payment. Consequently, you will need to identify the consumer’s liability at the point of sale.

A January 2005 National Association of Health Underwriters survey found that the greatest interest in CDHC products was among small firms (two to 100 employees).

“These companies may be least able to dedicate time, money, and attention to prepare themselves and their staff for the brave new world of CDHC,” said Kevin Corcoran, executive vice president of the American Chiropractic Association.

Corcoran goes on to say, “CDHC will catch on when it has a proven track record of being successful, and it will develop that track record after it catches on with enough employers to create a track record. I think adoption will be gradual until it hits the tipping point, after which it will accelerate significantly.”

Savvy chiropractors will take advantage of this gradual adoption period to educate themselves and their patients about the changes, benefits, drawbacks, and implementation of CDHC.