High Deductible Strips Ounce of Prevention
Coverage in high-deductible health plans hit 10 million in 2010. Created to curb health care spending, the plans appear to be doing just that, but at the cost of prevention.
According to the largest study of high-deductible health plans –
Participants in their first year on the plan significantly reduced their use of preventive care.
Study Findings
The RAND Corporation conducted the study. The American Journal of Managed Care published the study’s findings in the March 2011 edition of the journal.
- The study researched more than 800,000 families in the U.S.
- Individuals in high-deductible health plans averaged a 14 percent reduction in health care spending, compared to families with lower deductibles
- Families in high-deductible plans significantly cut back on preventive care
- Families in those plans also had lower spending in inpatient/outpatient medical care and prescriptions
- The spending on emergency care for families in high-deductible plans did not differ from families in lower deductible plans
The study revealed that the amount of the deductible made a difference.
- There was significant cost savings on plans with individual deductibles of $1,000 or more
- Families with deductibles from $500 to $999 did not have significant cost savings
The researchers found changes in the use of preventive care in families with high deductible plans.
- Rates for childhood vaccinations decreased
- Decreases in rates for mammography, cancer screenings, including colorectal, also fell
Researchers noted the RAND study only tracked families in their first year on a high-deductible health plan. It appears that in the short-run, the plans achieve cost savings, but had the undesirable effect of discouraging families from accessing recommended preventive care.
Notice of Disclaimer –Cathy Miller is not a health care professional and cannot provide medical advice. The information provided is for your general background only, and is not intended to constitute medical advice as to your specific circumstances. We recommend you review medical issues with your physician.
This is good information for people who are considering a high deductible plan. It seems like they provide a financial incentive but provide a health “disincentive.”
Kristen´s last [type] ..Need An MRI? How to Make the Experience Positive
Hi Kristen: Thanks for stopping by. That is the downside for high deductible plans. For many, it is really about having coverage for a catastrophic illness or injury.
Hopefully, with the preventive services at no out-of-pocket expense we can get people at least that treatment so they can prevent more serious chronic diseases.
Thanks again for sharing your comments.
[...] Americans who have high-deductible health plans tend to not get necessary medical treatments whether they are low-income people with chronic health problems or healthier or higher-income people, according to a study by RAND, a non-profit research group, and Towers Watson, a consulting firm. The researchers analyzed healthcare claims data from 59 large companies, examining first-year experiences with high-deductible plans comprised of more than 800,000 families nationally between 2003 and 2007. [...]