Can Consumer Driven Health Plans Contain Costs?
Experts question whether consumer driven plans will save money or simply shift more health care costs to employees. The following are several reasons that consumer driven health plans are unlikely to contain health care costs: • Typical consumer driven plans have deductibles of $1,500 for single coverage and $3,000 for family coverage and employer savings account contributions ranging from $500 to $1,000. If individuals forgo preventive care and/or fail to purchase prescribed prescription drugs, serious adverse health consequences will lead to higher health care costs. • Once an individual meets the plan’s out-of-pocket maximum, the plan covers expenses in full. The bulk of health benefit costs are incurred by a small minority of patients with high health care expenses (10% of health plan participants account for 60% of total health care spending). Cost containment efforts should focus on individuals with high claims, typically those with chronic illnesses. That can be accomplished by
