Consumers' Reaction to High Deductible Health Plans is Troubling
In a recent MediRevv eBook, The Lowdown on High-Deductible Health Plans & What It Means for Your Self Pay Success, we outlined the collection challenges that the increasingly popular HDHPs present for healthcare providers.
While enrollment in these new-type plans do represent an increase in the number of insured patients across the country, the truth is that, as Modern Healthcare pointed out not long ago when it quoted Christopher Kerns of The Advisory Board:
“Healthcare providers are collecting “0.18 to $0.34 on the dollar from patients with high-deductible plans.”
That’s obviously not good.
More disturbing news was recently presented in a FierceHealthPayer online article that cited a study conducted by the National Bureau of Economic Research. The group examined what happens when “a large, self-insured U.S. firm forced its employees to switch from an insurance plan that provided them with free healthcare to a high-deductible plan.”
The findings revealed that the switch from the no-cost sharing plan to the HDHP did reduce healthcare spending by $100 million per year.” Yet those cost savings to the industry were due in large part to a reduction in patients seeking treatment due to the costs associated with HDHPs, including reductions in preventive care.
“The study findings,” the article states, “back up concerns that consumers are foregoing medical care because of high-deductible insurance,” and closed with a similar conclusion that we addressed in the aforementioned eBook: “…in the long run it may actually increase costs if consumers skip preventive services and treatment for chronic conditions.”
Time will tell just how significant the ramifications of HDHPs will be to healthcare.
In the meantime, we’d like to offer you a free copy of the eBook, below.