The federal government is increasingly developing high-deductible insurance policies, and people have had varied reactions to the move. Plans require individuals to use ‘out of pocket’ more often to pay for their health; some arguing that it encourages individuals to make better healthcare choices. At the same time, some view it as a burden to consumers since it reduces their disposable income. Therefore, state health care policies have positive effects on the relatively healthy economy since it enables them to save; however, they impact consumer costs negatively since they reduce a person’s monthly income.
The most engaging part of an HDHP is the low monthly premium subscriptions; as the deductibles increase, month to month premiums reduce (Hempstead, 2014). It therefore implies that premiums are lesser than deductibles plans; thus, low out-of-pocket maximized. Moreover, the fact that HDHPS provides a hundred percent coverage for preventive health through network services, individuals satisfies what they are deductible; the policy helps the relatively healthy to save ("American Enterprise Institute," 2020). The healthy medical expenses majorly include screenings and physicals annually; thus, the High Deductible Health Plans favors the healthy. Therefore, the federal policies have a positive impact on the relatively healthy, and the low premiums are advantageous to some individuals.
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Federal policies harm the public since they reduce people's monthly payments and increase the chances of individuals spending more than they can afford on medical bills. The high deductible health plans significantly minimize an individual’s monthly salary due to the deductions (“American Enterprise Institute,” 2020). The deductions from out-of-pocket plans reduce people’s disposable income, which reduces savings.
Moreover, the policies force individuals to spend beyond their means on medical bills because the program covers preventive care only (“As Health Care Costs Continue to Rise, Is There a Place For a Private Health Care Market?”, 2016). The allegation demonstrates that despite individuals making payments monthly, they will likely spend more on medical bills in cases of emergencies or accidents.
In a nutshell, the federal policies that encourage individuals to take a high-deductible health plan are advantageous to the relatively healthy but reduce monthly income and force a person to spend more in case of emergencies and accidents. The policies mainly cover preventative care; thus, the relatively healthy may save from adopting the plan since they rarely use the services. However, a monthly deduction reduces an individual’s income and exposes one to spend more in case of new diagnoses since the policy covers preventive care only.
References
“ As Health Care Costs Continue to Rise, Is There a Place For a Private Health Care Market?”
Hempstead, K. (2014). Early trends in health care utilization in the commercial market. Robert Wood Johnson Foundation. Retrieved from https://www.rwjf.org/en/library/articles-and-news/2014/09/early-trends-in-health-care-utilization-in-the-commercial-market.html
The state of competition in the health care marketplace. America Enterprise Institute. Retrieved from https://www.rwjf.org/en/library/articles-and-news/2014/09/early-trends-in-health-care-utilization-in-the-commercial-market.html
