2 ms·

Isn't that 10% stat potentially hiding issues of co-pay, deductibles, network range, and actual level of coverage?

nradov 4y ago
Nothing is being hidden. High deductible health plans have been popular, especially among younger consumers. The federal government has specifically promoted those as a way to hold down healthcare expenses, and enrollees receive income tax benefits. https://www.cdc.gov/nchs/products/databriefs/db317.htm https://www.cdc.gov/nchs/products/databriefs/db317.htm Health plans are required to meet network adequacy requirements. https://www.kff.org/health-reform/issue-brief/network-adequacy-standards-and-enforcement/ https://www.kff.org/health-reform/issue-brief/network-adequa...
- SketchySeaBeast 4y ago
  My point with the "hidden" comment was that even though people have coverage they may not be able to use it due to having an unaffordably high deductible, and your first link is showing that there is a rise in high deductible plans and that lower income people don't usually have an HSA to offset the cost. It also points out that 60% of people get their insurance through their company, and that companies are increasingly moving towards the cheapest plans with the highest cost to the individual user. Is an insurance plan an insurance plan if you can't pay the deductible?
- LorenPechtel 4y ago
  Observation: There's adverse selection at work. People do the economics and look at their expected medical spending with both low and high deductible plans--those not expecting substantial bills generally choose the high deductible plans. Insurance companies observe the results of this--those who choose low deductible plans end up costing more. I've done the math most years and I have yet to find more than a narrow window where you're better off with the low deductible plan than with a high deductible plan and putting aside the savings. Typically there's no window at all, the high deductible plan is always superior. (Note that this generally changes in situations where you pay a *percentage* of your premium, such as subsidized ACA plans.) If we want to move away from high deductible plans the only way is for Congress to impose it, market forces will always drive it as high as it can legally go.

Nothing is being hidden. High deductible health plans have been popular, especially among younger consumers. The federal government has specifically promoted those as a way to hold down healthcare expenses, and enrollees receive income tax benefits. https://www.cdc.gov/nchs/products/databriefs/db317.htm https://www.cdc.gov/nchs/products/databriefs/db317.htm Health plans are required to meet network adequacy requirements. https://www.kff.org/health-reform/issue-brief/network-adequacy-standards-and-enforcement/ https://www.kff.org/health-reform/issue-brief/network-adequa...

SketchySeaBeast 4y ago
My point with the "hidden" comment was that even though people have coverage they may not be able to use it due to having an unaffordably high deductible, and your first link is showing that there is a rise in high deductible plans and that lower income people don't usually have an HSA to offset the cost. It also points out that 60% of people get their insurance through their company, and that companies are increasingly moving towards the cheapest plans with the highest cost to the individual user. Is an insurance plan an insurance plan if you can't pay the deductible?
LorenPechtel 4y ago
Observation: There's adverse selection at work. People do the economics and look at their expected medical spending with both low and high deductible plans--those not expecting substantial bills generally choose the high deductible plans. Insurance companies observe the results of this--those who choose low deductible plans end up costing more. I've done the math most years and I have yet to find more than a narrow window where you're better off with the low deductible plan than with a high deductible plan and putting aside the savings. Typically there's no window at all, the high deductible plan is always superior. (Note that this generally changes in situations where you pay a *percentage* of your premium, such as subsidized ACA plans.) If we want to move away from high deductible plans the only way is for Congress to impose it, market forces will always drive it as high as it can legally go.