Health Plans have had a much more focused approach on health care policies and consumer costs. With federal and state governments implementing higher deductibles for healthcare coverage, they are forcing consumers to take more responsibility for their healthcare needs. These types of policies require the consumer to pay more out-of-pocket costs and label the transition as “consumer-based”. The effects of this change have created pros and cons to the issue, while carefully considering one’s own medical needs. Evaluating these policies and plans helps to identify the impact that the rising costs has had on the consumer.
Since the implementation of the Affordable Care Act (ACA) and rising costs to High Deductible Health Plans (HDHP), it’s becoming hard for the consumer to keep up financially. The ACA created health insurance exchanges to combat rising industry costs, but didn’t take into account that insurance companies would lose money. This forced the health plans to raise deductible amounts and pass more medical responsibility on to the consumer (Solomon, 2021). In 2020, the deductibles for HDHP were 1,400 for individual and 2,800 for a family. As healthcare spending continues to rise, both the consumer and employer will spend more each year on healthcare expenses.
For those that are healthy with little to no medical issues, an HDHP is a great option. You will save money long-term by paying low premiums with preventative and in-network services covered at 100 percent. This is before you satisfy your deductible. This new approach is intended to incentivize consumer driven healthcare. If you suffer from chronic illnesses or have a medical emergency, you are at risk of facing large medical bills that you can’t afford (Roberts-Grey, 2021). Facing major debt could lead to individuals not seeking medical treatment and putting health needs on the back burner for even bigger problems.
Establishing better communication for price transparency when it comes to medical costs are much needed as costs continue to grow. The consumer is becoming more knowledgeable about their health care coverage and are able to make better decisions about treatment. In 2020, the transparent price initiative was created. Americans will gain access to price information letting them know how much their healthcare will cost. Unprecedented price transparency benefits everyone to help assist in driving down healthcare costs (CMS.gov, 2020).
Consumer and provider costs due to federal and state changes has been affected in many ways. While lower premiums for HDHP’s may save healthy consumers money long-term, rising deductibles are costing the unhealthy more up front and out of pocket. Creating the ACA to combat medical costs put providers and insurance companies in a tough situation. Forcing them to forward costs to the consumer due to loss of revenue from the exchanges. Having transparent pricing with employers, consumers and providers will be the best solution for the healthcare industry moving forward.
Since the implementation of the Affordable Care Act (ACA) and rising costs to High Deductible Health Plans (HDHP), it’s becoming hard for the consumer to keep up financially. The ACA created health insurance exchanges to combat rising industry costs, but didn’t take into account that insurance companies would lose money. This forced the health plans to raise deductible amounts and pass more medical responsibility on to the consumer (Solomon, 2021). In 2020, the deductibles for HDHP were 1,400 for individual and 2,800 for a family. As healthcare spending continues to rise, both the consumer and employer will spend more each year on healthcare expenses.
For those that are healthy with little to no medical issues, an HDHP is a great option. You will save money long-term by paying low premiums with preventative and in-network services covered at 100 percent. This is before you satisfy your deductible. This new approach is intended to incentivize consumer driven healthcare. If you suffer from chronic illnesses or have a medical emergency, you are at risk of facing large medical bills that you can’t afford (Roberts-Grey, 2021). Facing major debt could lead to individuals not seeking medical treatment and putting health needs on the back burner for even bigger problems.
Establishing better communication for price transparency when it comes to medical costs are much needed as costs continue to grow. The consumer is becoming more knowledgeable about their health care coverage and are able to make better decisions about treatment. In 2020, the transparent price initiative was created. Americans will gain access to price information letting them know how much their healthcare will cost. Unprecedented price transparency benefits everyone to help assist in driving down healthcare costs (CMS.gov, 2020).
Consumer and provider costs due to federal and state changes has been affected in many ways. While lower premiums for HDHP’s may save healthy consumers money long-term, rising deductibles are costing the unhealthy more up front and out of pocket. Creating the ACA to combat medical costs put providers and insurance companies in a tough situation. Forcing them to forward costs to the consumer due to loss of revenue from the exchanges. Having transparent pricing with employers, consumers and providers will be the best solution for the healthcare industry moving forward.