Advantages and Disadvantages of a High-Deductible/Consumer-Driven Health Plan
Many of the available consumer-driven healthcare plans (whether they are spending-account or tiered-model plans) are now categorized as high-deductible health plans. These plans are currently the fastest growing plan options on the market, growing over 25% in the past decade. Although they are low in cost, members’ willingness to access care in a high-deductible environment have brought about valid quality of care and access to care concerns.
What are the advantages and disadvantages of a high-deductible/consumer-driven health plan? How would you best explain these points to your employees if your organization were changing to this type of coverage? Explain these items in a 200-word peer-reviewed source supported analysis (vs. posting opinions). Remember to use in-text citations in your post.
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Discussion
Healthcare facilities and clients are shifting to health insurance options promising to reduce health-related expenses. According to Cover Kansas (2023), high-deductible health plans (HDHPs) are an increasingly popular alternative, with many preferring it to traditional packages. However, the approach has diverse advantages and disadvantages, requiring careful evaluation to make informed decisions.
HDHPs’ provisions boost healthcare coverage and access due to several strengths. For instance, this plan includes a reduced monthly premium because of the reduced risk, which enables the insurance to reduce the remittances (Krishnan & Chung, 2020). Their flexibility makes them compatible with government-based health savings Accounts (HAS), which enable individuals to save extra money through tax exemptions, availing additional funds for copayments and other out-of-pocket health expenses (Cover Kansas, 2023). Since patients pay a certain percentage to compensate for the reduced premiums, it encourages them to demonstrate informed decisions while seeking care. Such an aspect leads to increased responsibility and control in their spending. Finally, it is consistent with the needs of people with minimal healthcare demands since they only