3 thoughts on “Problem Memo on High Healthcare Plan Deductibles”
Freddy, your evidence is clear and concise. The Kaiser Family Foundation data shows 25% of non-elderly Americans do not have sufficient liquid assets to pay their deductibles. The impact of this is actually increased hospitalizations due to individuals not seeking care until their conditions worsen. Your pointing out this unintended consequence is a convincing argument that review of the ACA is needed.
Another area you may want to investigate is the assumption that high deductible plans come with a low monthly premium that is actually “low.” Premiums increase every year and what is now considered “low” isn’t really low compared to rates from, say, 5 years ago. What is the impact of that high cost?
Your memo certainly begins to lay out some of the new issues that stem from the plans associated with the Affordable Care Act, as high deductible plans are a reaction to the law. It would be interesting to see consumer thoughts though, such as survey data. You point out that high-deductible plans are associated with low usage, but since they are cheaper plans, how do people feel about them? Compared to not having insurance at all, are this an OK alternative? Evidence has shown to that premiums raises, especially with employer plans, are not as high as they once were thanks to high deductibles – which is better for the consumer?
Freddy, this topic is so important as we keep hearing great news about the expansion of access to private health insurance plans. You do a nice job explaining the severity of costly deductibles and people’s fears.
It would be awesome to see more data comparing before and after Obamacare plans. My guess is that coverage improved but it is still far from reach for too many.
Also, there were alternatives to Obamacare out there – a single payer system. It would help to see what the deductibles would be under such systems. In the end it may make your memo even stronger.
Freddy, your evidence is clear and concise. The Kaiser Family Foundation data shows 25% of non-elderly Americans do not have sufficient liquid assets to pay their deductibles. The impact of this is actually increased hospitalizations due to individuals not seeking care until their conditions worsen. Your pointing out this unintended consequence is a convincing argument that review of the ACA is needed.
Another area you may want to investigate is the assumption that high deductible plans come with a low monthly premium that is actually “low.” Premiums increase every year and what is now considered “low” isn’t really low compared to rates from, say, 5 years ago. What is the impact of that high cost?
Your memo certainly begins to lay out some of the new issues that stem from the plans associated with the Affordable Care Act, as high deductible plans are a reaction to the law. It would be interesting to see consumer thoughts though, such as survey data. You point out that high-deductible plans are associated with low usage, but since they are cheaper plans, how do people feel about them? Compared to not having insurance at all, are this an OK alternative? Evidence has shown to that premiums raises, especially with employer plans, are not as high as they once were thanks to high deductibles – which is better for the consumer?
Freddy, this topic is so important as we keep hearing great news about the expansion of access to private health insurance plans. You do a nice job explaining the severity of costly deductibles and people’s fears.
It would be awesome to see more data comparing before and after Obamacare plans. My guess is that coverage improved but it is still far from reach for too many.
Also, there were alternatives to Obamacare out there – a single payer system. It would help to see what the deductibles would be under such systems. In the end it may make your memo even stronger.