High Deductible vs. Traditional Insurance
In a society where everyone wants the biggest bang for their buck, Americans have been given options for healthcare plans that best suits their needs. For the American healthcare system, there are the traditional insurance plans, and then there is the High deductible health plan. According to healthcare.gov (2015), a high deductible plan is “A plan that features higher deductibles than traditional insurance plans. High deductible health plans (HDHPs) can be combined with a health savings account or a health reimbursement arrangement to allow you to pay for qualified out-of-pocket medical expenses on a pre-tax basis” (p.1) Many consumers prefer this method to the traditional method due to its benefits: some of the benefits associated with this health plan includes: “ lower premiums; these plans are often linked to a savings account that offers tax benefits; employers and the employee may contribute to9 these accounts to help cover medical expenses.” According to Amelia Haviland (2015), associate professor of statistics and health policy at Carnegie Mellon University who has published studies on the effect of high deductible plan on healthcare spending states, “If it is going to keep you from going to the Emergency Room when you need to go, then do not chose that plan.” The statement above notes one of the down falls to this plan. Life happens and when there is an emergency a person would want to rely on their insurance to assist them in a time of need. According to Rand study of claims data (2011) “studies show that families enrolled in a high deductible plan spends 14 percent less on care, than families in traditional plans, according to Rand study of claims data” (p.3) It is my personal opinion that this plan may not be beneficial for consumers. Life is about the journey of the unknown, considering no one knows what will happen tomorrow, it is important to stay prepared. In my opinion, stay prepared means...
References: Healthcare (2015) “High Deductible Plan,” http://www.healthcare.gov/glossary/high-deductible-health-plan/
The Washignton Post(2015), “Benefits of High Deductible Plan,” http://www.washingtonpost.com/national/health-science -benefits-of-high-deductible-health-plans/2012/11/12/12b9af54-6a2e-11e1-acc6-32fefc7ccd67.html”
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