The rise of the high-deductible health insurance plan (HDHP) is among the most significant health insurance developments in recent decades but the plans are controversial. Those in support of HDHPs argue these plans will encourage people to be “more astute health care consumers” and to make healthcare decisions “on the basis of cost and quality information” (Fronstin & Collins, 2005, p.4). This will theoretically eliminate the moral hazard with which health insurance and health care has been plagued, lead to decreased waste, and therefore lower consumption and cost. Critics, however, point to evidence that these new insurance plans will lead to adverse selection and that the high out-of-pocket costs will discourage the use of health care services, especially by those in lower income brackets or those who have chronic conditions. Critics also suggest these plans will do nothing to address the skyrocketing costs of healthcare (Weissert & Weissert, 2006, p.387, Fronstin & Collins, 2005). The passage of the Patient Protection and Affordable Care Act (PPACA) of 2010, with its mandate that all Americans be covered by health insurance, is likely to make these lower-premium, high-deductible health plans more prevalent and therefore worthy of intense scrutiny.
"High-Deductible Health Insurance Policies with Health Savings Accounts: A Policy Review,"
1, Article 5.
Available at: http://scholarworks.gvsu.edu/spnhareview/vol10/iss1/5