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SolveYourProblem
Article Series:
Health Insurance
High
Deductible Health Plans:
What's the Right Option?
You should know that high-deductible health
plans (HDHPs) are very important role in the health benefits
marketplace today. The premiums are lower, which allows many
employers, especially small businesses, to provide health benefits
to their employees they might not otherwise be able to afford.
HDHPs are one solution to the growing problem of the uninsured
people today. HDHPs help raise consumer awareness of the real
costs of health care, which is having a positive impact on
rising health care costs. Research has also shown that people
tend to take better care of them selves and go to the doctor
less if they have to pay more for it.
With health care costs continuing to rise at double-digit
rates each year, many employers have been forced to reduce
benefits. They shift more cost to employees or drop coverage
entirely to save money. Less than two-thirds of all
employers now offer health insurance to their employees do
to the cost
to the employer or not having enough employees for it to be
worth it. Employee contributions to health care costs have
increased 126 percent over the last five years. HDHPs, with
their lower premiums; offer employers an affordable choice
when offering health benefits to their employees, with out
it coming out of their pockets.
HDHPs give consumers a larger role in health-care decision-making
and create greater awareness of the rapidly increasing cost
of services and why taking care of your health is very important.
With the exception of many preventive care services, covered
employees must pay the deductible - a preset level of medical
expenses - before most medical expenses are covered by the
plan. HDHPs are often combined with an HSA or a health reimbursement
arrangement (HRA), which help plan members meet their deductibles.
These plans encourage greater cost awareness and responsibility
to the insured, and helps decision-making with the help of
consumer information tools. A recent study found that one out
of four employers had significantly increased either employee
premiums or cost sharing at the point of care in the previous
year. The same study found employers who engaged workers in
health care decisions were significantly more successful at
controlling health care costs than those employers who did
less to encourage employee engagement. A study as far back
as the 1970s showed that participants in HDHPs used 25-30 percent
fewer services than those in a no cost plan and take better
care of their health needs.
Aren't HDHPs really just a means of cost-shifting to save
employers and insurers money? No. Continually rising health
care costs pose a real danger to consumers and the health care
system overall. As costs rise, more employers abandon or reduce
health coverage for their employees, leaving more Americans
uninsured. The proportion of Americans under age 65 with employer
health coverage fell from 67 percent in 2001 to 63 percent
in 2003, resulting in almost 9 million fewer people with employer-based
coverage. High-deductible plans are more affordable than other
types of coverage, allowing many consumers to obtain or maintain
coverage. HDHPs are not for everyone, but they are an important
option in a full range of benefits offerings now available
to the marketplace. It is also important to remember that high-deductible
coverage is typically offered in conjunction with HSAs or HRAs
that help consumers pay a portion of their deductibles. These
consumer-directed plans also generally feature 100 percent
coverage of preventive care and access to information tools
that help consumers navigate the health care system.
Do
high-deductible plans prevent consumers from getting the
care they need? No. Consumers in HDHPs have the security of
knowing they have coverage for major medical events, and most
consumer-directed plans with a high deductible include 100
percent coverage of preventive care. Independent research also
shows that among people enrolled in HDHPs who were typical
of Americans covered by employment-based insurance, variation
in use of services appeared to have minimal to no effect on
health status. Certainly there are times when consumers with
high deductibles face tough decisions about whether to access
health care services. It is very important, therefore, that
consumers in HDHPs become fully informed about the choices
they face so that they can make the treatment decisions that
are right for them. Will high-deductible plans replace other
health benefits products? While HDHPs plans are an important
health care benefits option, the marketplace continues to look
for a full complement of health products and services to effectively
meet the needs of today's employers and consumers, to meet
that demand. Click here to to view health insurance quotes, compare plans side-by-side and apply for the most affordable health insurance within your budget. I did this myself (June 17, 2011) to change my health insurance policy. Saved me $84 per month (or $1,008 per year). It's my SolveYourProblem recommendation.
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by SolveYourProblem.com
: 2006
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