Health Insurance Daily

High Deductibles Gain Acceptance

According to the Los Angeles Times, as medical costs keep climbing, high-deductible plans are spreading to the giant corporations that have been the backbone of traditional job-related, low-deductible health insurance.

What suddenly makes such plans attractive to workers is that many are caught in a painful bind: In recent years, pay increases have been small at best, while employers have been requiring workers to pay a larger share of their health insurance premiums.

It's not uncommon for higher payroll deductions for health care to more than offset any pay raises. With the high-deductible plan, workers pay lower monthly premiums, and their employers commonly help them build up a special savings account to cushion the impact of a larger annual deductible.

The accounts are controlled by the employees, which has led insurers and employers to label the plans "consumer-directed."

"You're beginning to see a lot of growth in these plans, not because they're going to solve America's health care challenge, but because it's a way for employers to cut their out-of-control benefit costs," said Robert Laszewski, a consultant to health insurance companies.

posted by Mike @ 11:55 AM