Health Affairs, doi: 10.1377/hlthaff.25.w540 (Published online October 24, 2006) © 2006 by Project HOPE	New Online   Senate Health Reform Bill   Rewarding Providers   Public Option Policy Brief   Health Reform & Abortion   Delivery System Reform

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What Is Consumer-Directed Health Care?

¹ John Goodman is president of the National Center for Policy Analysis in Dallas, Texas.

^*Corresponding author.

Abstract

To control health care costs, someone must choose between health care and other uses of money. The value of most health care is experienced subjectively, as is the value of other goods and services. No one is in a better position to make these subjective trade-offs than patients themselves. The current system not only systematically denies patients the opportunity to make such choices, it distorts the incentives of providers in the process. Chronic patients in particular would be much better off if they could manage more of their own health care dollars and if providers were free to compete to meet their needs. [Health Affairs 25 (2006): w540-w543 (published online 24 October 2006; 10.1377/ hlthaff.25.w540)]

Key Words: Business Of Health, Consumer Issues, Health Reform, Insurance - Employer-Based System, Managed Care - Consumers, Quality Of Care, Health Spending, Insurance Market

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