High Deductible Health Plans - Don't Be Scared - Just Be Smart

Let's face it. Health insurance is getting more and more expensive. It is becoming increasingly difficult to afford coverage and buy peanut butter. Well, maybe not that bad but after reading a recent article over the weekend in the Los Angeles Times, you would think so. In the business section, an article by Daniel Yi portrays a person who purchased a $2500 dedutible plan on an individual basis and is now well over $10,000 in debt due to the back issues, skin cancer, and other health related expenses.

High deductible plans are designed to be partnered with a Health Savings Account. The author of the article insists that people can barely afford the insurance, yet alone putting money aside into a savings account and because they don't have the deductible, will avoid getting treatment for minor issues. I don't disagree with him entirely but we are talking about a change in the behavior of how consumers will start to purchase healthcare. This will not happen overnight.

The couple in the article did point out that if they did not have the insurance, they would have had to file bankruptcy. So, being in debt was better than not having insurance at all. The other issue is that most people that have been covered under HMO's here in California for so long have no idea what anything costs. People have become numb to the copay amount for the prescription they are taking that costs $10 at the pharmacy window but somewhere down the pipeline, a charge for $200 is being eaten by someone.

It's about trying to find a better way to get our arms around all of this. Education is important and will continue to be a critical component of larger enrollment in programs such as these.