Consumer-Directed Health Care

University of Pennsylvania Law Review PENNumbra, Vol. 156, pp. 107-125, 2007

Northeastern University School of Law Research Paper

20 Pages Posted: 8 May 2012

See all articles by Kristin M. Madison

Kristin M. Madison

Northeastern University - School of Law; Northeastern University - Bouvé College of Health Sciences

Peter D. Jacobson

University of Michigan School of Public Health

Date Written: 2007

Abstract

You won’t hear many health experts claim that the American healthcare system is functioning perfectly in terms of core considerations such as cost, access, and quality. The question that arises with the advent of any new policy approach seeking to improve the system is obvious: Does the change represent a step forward or backward? Professors Kristin Madison and Peter Jacobson take up this question in regard to the latest innovation in health care policy — consumer-directed healthcare (CDHC).

Professor Madison argues that while CDHC is not a panacea, “[e]ven if its shortcomings prevent its full diffusion through the American health care system, CDHC will still...help[] to establish a foundation for future reforms in health care finance and delivery, [and] has the potential to improve the health care system in the long run.” Professor Jacobson’s response? “CDHC is a direct attack on the idea that health care differs from other market commodities because of its moral aspirations...For those who believe that equity should be a fundamental attribute of health care delivery, CDHC represents a huge step backwards.” Nonetheless, Professor Madison is convinced that CDHC will be a lightning rod that stirs the American health care system out of its complacency and “forces us to confront the tradeoffs inherent in any health care system in a resource-constrained world.” Professor Jacobson is not content to wait and see how the American public reacts to CDHC: “If the policy focus is on CDHC, equity will be subordinated. If universal coverage dominates, CDHC proponents are probably right that cost and quality issues will be subordinate. For me, it’s an easy choice — helping those without insurance to have a minimal acceptable level of care.”

Suggested Citation

Madison, Kristin M. and Jacobson, Peter D., Consumer-Directed Health Care (2007). University of Pennsylvania Law Review PENNumbra, Vol. 156, pp. 107-125, 2007, Northeastern University School of Law Research Paper, Available at SSRN: https://ssrn.com/abstract=2054820

Kristin M. Madison (Contact Author)

Northeastern University - School of Law; Northeastern University - Bouvé College of Health Sciences ( email )

416 Huntington Avenue
Boston, MA 02115
United States

Peter D. Jacobson

University of Michigan School of Public Health ( email )

109 Observatory
Ann Arbor, MI 48109-2029
United States
734-936-0928 (Phone)
734-764-4338 (Fax)

HOME PAGE: http://www.sph.umich.edu/~pdj/

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