Texas Firm Announces CDHP Offering

June 8, 2005 (PLANSPONSOR.com) - UICI has introduced a consumer-driven health plan (CDHP) for small businesses.

The North Richland Hills, Texas health insurance provider said the CDHP products will be geared for businesses with two to 50 employees. The plans incorporate features, methods and technology that were adapted from HealthMarket, a CDHP provider that UICI acquired last year, the company said.

The plans let consumers comparison shop for doctors and hospitals before making an appointment using Web-based technology, according to a news release.

Along with traditional insurance pricing mechanisms like adjustable deductibles, coinsurance and extra benefit riders, the plan uses tools such as spending accounts and scheduled benefits and the Maximum Allowable Charge (MAC), the announcement said. Doctors and hospitals are rated based on fees they charge compared to the MAC.

The plan includes a health and wellness account as well. On the first day of coverage, consumers get $1,250 for that year’s routine services, such as check ups, mammograms and lab tests – with no deductible or co-pay. If there’s money left over at the end of the year, up to $500 remaining in the fund can be rolled over to the next year. If the fund is depleted, routine services remain covered, but with deductibles and coinsurance, the company said.

More information is at  http://www.uici.net .