3 ms·

What's the incentive for me to save all that money when my insurance pays for it anyway and my company pays for my insurance? Insurance is supposed to do this

What's the incentive for me to save all that money when my insurance pays for it anyway and my company pays for my insurance? Insurance is supposed to do this job - negotiate prices ...etc., but, people are so attached to their doctors that insurance usually caves giving hospitals a much higher bargaining power.

notyourday 8y ago
High Deductible Plan. Takes care of big ass expenses, steep cost in the beginning.
- ams6110 8y ago
  It's a start, but imperfect because most people with a high deductible plan will also have a health savings account (HSA). The HSA may even be required, not sure. The problem with HSAs is that although it's "your" money, it can only be spent on qualified health expenses. So there's a reduced incentive to spend carefully, because you can't use the money for anything else.
  - leetcrew 8y ago
    if you end up with "too much" money in your HSA, can't you just reduce the amount of money that goes into it? obviously you can't just go buy a car with the money, but to me it seems like there is a strong incentive not to overspend from your HSA if you control how much of your paycheck goes into it.
    - ams6110 8y ago
      Yes but I always contribute the max to get the most tax reduction. I like paying taxes less than I like paying doctors.
      - leetcrew 8y ago
        have you already maxed out your company 401k and IRA contributions?
  - bzbarsky 8y ago
    > it can only be spent on qualified health expenses Once you reach retirement age it can be used like any Traditional IRA account, except for inability to roll it over to another IRA or do a Roth conversion, if I understand correctly.
- organsnyder 8y ago
  HDPs can also have unintended side effects like patients delaying getting screenings until conditions are much worse (and more expensive to treat).
  - gowld 8y ago
    Why? HDPs aren't required to charge for screenings, any more than HMOd or PPOs are.
    - organsnyder 8y ago
      Yes, many screenings are covered 100% with no deductible. But if I think I'm having a stroke and call an ambulance, I'm responsible for the cost up to the deductible (I just checked my own HDP coverage to verify this). This wouldn't factor into my decision, but I'm fairly affluent (and my family actually maxes our deductible each year because of various chronic conditions). Someone that is in a different financial decision will absolutely be thinking of the cost of calling an ambulance (or going to the ER). Of course, if someone dies from a stroke rather than being treated and surviving, the result is lower healthcare expenditures (yes, that's morbid; but we also need to think about the incentives built-in to our healthcare system).

notyourday 8y ago

High Deductible Plan. Takes care of big ass expenses, steep cost in the beginning.

ams6110 8y ago
It's a start, but imperfect because most people with a high deductible plan will also have a health savings account (HSA). The HSA may even be required, not sure. The problem with HSAs is that although it's "your" money, it can only be spent on qualified health expenses. So there's a reduced incentive to spend carefully, because you can't use the money for anything else.
- leetcrew 8y ago
  if you end up with "too much" money in your HSA, can't you just reduce the amount of money that goes into it? obviously you can't just go buy a car with the money, but to me it seems like there is a strong incentive not to overspend from your HSA if you control how much of your paycheck goes into it.
  - ams6110 8y ago
    Yes but I always contribute the max to get the most tax reduction. I like paying taxes less than I like paying doctors.
    - leetcrew 8y ago
      have you already maxed out your company 401k and IRA contributions?
- bzbarsky 8y ago
  > it can only be spent on qualified health expenses Once you reach retirement age it can be used like any Traditional IRA account, except for inability to roll it over to another IRA or do a Roth conversion, if I understand correctly.
organsnyder 8y ago
HDPs can also have unintended side effects like patients delaying getting screenings until conditions are much worse (and more expensive to treat).
- gowld 8y ago
  Why? HDPs aren't required to charge for screenings, any more than HMOd or PPOs are.
  - organsnyder 8y ago
    Yes, many screenings are covered 100% with no deductible. But if I think I'm having a stroke and call an ambulance, I'm responsible for the cost up to the deductible (I just checked my own HDP coverage to verify this). This wouldn't factor into my decision, but I'm fairly affluent (and my family actually maxes our deductible each year because of various chronic conditions). Someone that is in a different financial decision will absolutely be thinking of the cost of calling an ambulance (or going to the ER). Of course, if someone dies from a stroke rather than being treated and surviving, the result is lower healthcare expenditures (yes, that's morbid; but we also need to think about the incentives built-in to our healthcare system).