High deductible health plans have increased over the past few years. How are these different than...

High deductible health plans have increased over the past few years. How are these different than the traditional health plans? As a consumer, which plan would you prefer and why?

Solutions

Expert Solution

A traditional health insurance plan works on a system of copays and deductibles. The plan helps to pay your doctor's bills, lab tests, and prescriptions. With a traditional health insurance plan, you may be financially responsible for paying copayments (or copays), deductibles, and coinsurance.

However, once you have met your deductible, you are usually only responsible for coinsurance, until you reach your out-of-pocket maximum. It’s important to stay within network when choosing a health care provider or going to the doctor to keep your costs down with a traditional health insurance plan.1

As the name suggests, a high-deductible health plan (HDHP) has a high deductible that you must meet before the insurance will start paying its share of your office visits, lab tests, and prescriptions.

It's basically will depen on consumer what are his/her preferences

Deciding on your health care plan comes down to your personal circumstances and financial situation. Traditional health insurance plans have lower deductibles, so this could be a better option for you if you go to the doctor often or expect to have major medical expenses, such as having a baby, in the near future.

Alternatively, high-deductible health plans have a lower premium, which can save you money in the long run. If you are healthy and are looking for a way to cut costs, this may be a great option to consider. However, you want to ensure that you have the liquid capital to cover the high deductible.

Basically in today's time, high deductible plans are favourable one

Rahul Sunny answered 1 week ago

Next > < Previous

Related Solutions

Jenn, age 35, has made deductible contributions to her traditional IRA over the past few years....

Jenn, age 35, has made deductible contributions to her traditional IRA over the past few years. When Jenn's, account balance was $30,000, Jenn received a distribution of the entire $30,000 balance of a traditional IRA. Jenn retained $5,000 of the distribution to help pay the taxes due from the distribution and Jenn immediately contributed the remaining $25,000 to a Roth IRA. What amount of tax and early distribution penalty is Jenn required to pay on the $30,000 distribution from the...

Why has health care administration increased so much over the past thirty years? How has this...

Why has health care administration increased so much over the past thirty years? How has this increase affect health care costs?

Infection Control Discuss what diseases have increased public awareness of infection control over the past few...

Infection Control Discuss what diseases have increased public awareness of infection control over the past few years? List three diseases that should concern health care workers today working in the hospital setting. ( sterile processing) must be a 230-word discussion CDC

Discuss the major causes of fraud over the last few years. What areas have increased and...

Discuss the major causes of fraud over the last few years. What areas have increased and what areas have decreased? Why is this the case? Have the costs of fraud increased or decreased? What is the single most effective method to prevent fraud from occurring according to the report?

Think of someone you have come to know well over the past few month or years....

Think of someone you have come to know well over the past few month or years. Did your initial impressions of this person match your current impressions? If yes, explain why it has same over the period of time and what factors have contributed in order to make this impression constant or unchanged. If not, explain how stereotypes and preconceived judgments and assumptions had influenced your initial impression of that person?

Discuss the economic impact of high deductible health insurance plans on patients’ ability to pay for...

Discuss the economic impact of high deductible health insurance plans on patients’ ability to pay for their medications. Describe the major factors that contribute to higher costs for prescription drugs and provide your opinion of the profit-seeking strategies of pharmaceutical companies.

Over the past few years, several U.S. states have either legalized recreational marijunana or at least...

Over the past few years, several U.S. states have either legalized recreational marijunana or at least decriminalized its use("Would Legalizing Marijuana Help the Economy?"Debate.org). Proponents argue that legalizing the use of marijuana would help the economy by boosting economic activity and reducing costs. Doyou agree? Why or why not? use the concepts of supply and demand and consumer and producer surplus to support your answer.

There have been a number of high profile mergers in the recent past and a few...

There have been a number of high profile mergers in the recent past and a few hostile takeovers or attempts. Do some research to find one of the high-profile events, and then provide a detailed analysis of the facts and circumstances surrounding the transaction.

These consumer-driven health plans combine high-deductible medical insurance with financial accounts designed to encourage responsible health...

These consumer-driven health plans combine high-deductible medical insurance with financial accounts designed to encourage responsible health care purchasing by your employees. This is another approach to managing the costs of healthcare. What are the advantages and disadvantages of consumer-driven healthcare plans?

There has been a great deal of discussion in the news over the past few years...

There has been a great deal of discussion in the news over the past few years about raising the minimum wage. Some cities and states have increased minimum wages in their locality above the federal minimum wage, which has brought demands for the federal minimum wage to be increased. Some argue that the federal minimum wage should be increased to $10.10 while others argue for the $15 level. From a microeconomics perspective, who is hurt and who is helped by...

Subjects