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Dec 08

Premier Ultrasound

Understanding the Reason Behind High Deductible Health Plans

Posted by Premier Ultrasound

Understanding the Reason Behind High Deductible Health Plans

Don’t let the idea of having to pay out of pocket for you healthcare scare you.

Remember the time when healthcare wasn’t so confusing? The time we could visit our doctor for an annual checkup, get the necessary tests done, and only worry about paying a $10 copay? As long as we paid our healthcare premium, we knew that we could be taken care of without having to worry.

Well, times are changing. Healthcare costs have gotten so high that insurance companies are having to charge high premiums to keep up with those costs. As a result, healthcare premiums are no longer affordable. In fact, premiums have risen 80% since 2003 while inflation has only risen 27%.

As an attempt to lower healthcare costs and keep it affordable for consumers, the high deductible health plan was created. The high deductible health plan allows the insured to pay a lower and more affordable premium up front, but requires out-of-pocket patient contributions for almost all health care needs up to a certain dollar amount.

How does this bring healthcare cost down?

Insurance companies have determined that if patients are required to pay out of pocket for their care, they will more likely choose lower cost options. This plan is commonly referred to as a “consumer directed plan” because it puts the patients in control of their healthcare costs and incentivizes patients to shop for their healthcare. As more of these patients choose when and where they receive care, the number of unnecessary doctors’ visits and exams done at high-cost facilities will decrease, bringing healthcare costs down.

The high deductible plan is becoming more and more popular. Currently, 15.5 million Americans are covered by high-deductible healthcare plans. Also, studies show that 32% of employers are offering only the high deductible plan to their employees in 2015 and the majority of companies are encouraging their employees to sign up for one as well.

Don’t let the idea of having to pay out of pocket for you healthcare scare you. Instead, know that you can save money and help bring down healthcare costs by choosing where you go for your healthcare wisely.



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