High Deductible Health Plans and Risk

CRAIN'S COMMENTS

Those with national health insurance can read this and chuckle. For the rest of us . . . .

An article appeared today in Employee Business News regarding consumer bias against high deductible health plans (HDHPs), and that these plans represent a better value than traditional plans for many people.(1)

That may be true if

  1. You have a choice about the type of plan.
  2. You have access to a Health Savings Account or other tool to pay the expenses the HDHP doesn’t.
  3. You have the money to put into a Health Savings or Health Reimbursement Account without impacting what you need for rent or food.
  4. And/or you have a pile of cash and can self-insure against what HDHPs don’t pay.

In other words, if you healthy and rich, an HDHP may make sense. Or concierge care. Or self-insurance.

When people talk about how good a health insurance plan is, they…

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