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gulpxarff44

Business Finance

Description

Evaluate the potential impact of these changes on the transparency of health care financial statements and whether or not the same information is truly represented.  Explain your rationale.

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Explanation & Answer

The consumer-directed health care arrangement (CDHC) is an alternative health care product that has come about solely as a response to rapidly rising health care costs. According to an annual study by the Kaiser Family Foundation and the Health Research Educational Trust, employers increasingly passed along higher health care costs to employees in 2003 - a year that marked the largest rise in health insurance premiums since 1990 and the third consecutive year of double-digit premium hikes. Rapidly increasing premiums have generated speculation that employers may move to new types of health insurance arrangements in order to help control future costs. While it is argued that the CDHC may not be the “silver bullet” to drastically reduce health care costs, some employers and health care providers believe it may be one alternative to help control costs.


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