This week, let\'s address a relatively new type of insurance plan referenced in

Question

This week, let's address a relatively new type of insurance plan referenced in Chapter 8, the High Deductible Health Plan. Although they have been around since 2001, their popularity as the plan of choice has tripled since 2009, and this is now the second most popular type of plan offered by employers in the U.S.

1. Why have they gained so much popularity?

2. Who is the "typical" beneficiary targeted by these plans?

3. What could some unintentional consequences be, for those covered by these plans? (either health consequences, or financial consequences?)

Explanation / Answer

1:Why have they gained so much popularity?

The cost of health is increasing day by day, hence employers are shifting from Pre Placement Offer(PPO) and Health Maintainance organisation(HMO) to High Deductible Health Plan. The reason why the High Deductible health plan are popular are:

2: Who is the "typical" beneficiary targeted by these plans?

The High Deductible Health Plan is mainly beneficials to individuals who are healthy and dont require treatments that cost very high amounts of money. Healthy individuals does not need health checkups regularly and common conditions like fever and flu are free. People with high income benefit more from this plan as a person pays for hes/her healthcare from out of thier pocket before the insurance starts to cover the cost of health.

3: What could some unintentional consequences be, for those covered by these plans?

As the High Deductible Health Plan starts to cover costs of health only after the enitre deductible is paid out of the individual pocket, sudden medical emergency bills, test, prescriptions will not be covered under this plan until you reach the deductible amount.

If a surgery is needed to be done, the insurance company will not pay the expenses till the entire deductible amount is paid.

If an individual have a chronic desease and need frequent visits to the health center, an HDHP will not help the individual, as the patient will be required to pay high deductible frequently and will end up paying the expenses out of their own pockets.

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