Trouble Ahead For High Deductible Health Plans?

Benefit plans with high cost-sharing do much more than simply shift costs from employers and health plans. Conventional wisdom suggests that they help lower overall medical expenses by making patients more selective and cost-conscious consumers. However, studies are beginning to ask if high deductibles could actually result in adverse consequences in the long run due to avoidance of necessary care in the short run. There is not much comprehensive or definitive knowledge about this potential trend yet. This post outlines a few observations based on the current state, and recommends actions that health care leaders can take while time tells us what high deductible plans really have in store for costs and outcomes. The Kaiser Family Foundation reports that average annual out-of-pocket costs per worker rose almost 230 percent between 2006 and 2015, based on its annual survey of employer health benefits coverage. Key findings from this survey were also featured in a Health Affairs Web First release last month. As employers cut back on health care spending, more small and large employers are offering high deductible health plans (HDHPs) among their benefit options, often paired with a tax-free spending account to pay medical bills that both employers and employees can contribute to. In 2015, 24 percent of all workers were enrolled in a HDHP with a savings option. This is a dramatic rise since 2009, when just 8 percent were covered under such plans. The latest survey also suggests t...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Costs and Spending Featured Insurance and Coverage Long-term Services and Supports Population Health Quality ACA silver plan Emergency Medicine high deductible health plans out of pocket costs Source Type: blogs