Consumer Driven Health Care Leads To Poorer Health Care Quality
Friday December 22, 2006
A new study conducted by the Employee Benefits Research Institute and Commonwealth Fund shows that consumer driven health plans like HSAs do not reduce the number of uninsured individuals and lead to poorer quality of care. According to the Des Moines Register, patients who choose to save money by forgoing preventive care ultimately spend more out of pocket on more expensive complications and hospitalizations. The theory behind consumer driven plans may thus be flawed and lead to more problems than it solves.
Comments
I am curious as to why people would forgo preventive care when the majority of consumer driven or high deductible plans cover preventive care in full?
First, I am not convinced that the majority of consumer driven plans cover preventive care in full. In a study of high-deductible plans offered by employers in 2005, researchers found that only 30% of workers had access to a plan which offered any preventive benefits whatsoever.
Secondly, consumer driven plans tend to define “preventive care” very narrowly. Preventive care to help people avoid serious illness or hospitalization, such as statin drugs or blood glucose monitoring for people with diabetes would not be covered. Plans which offer preventive benefits usually limit such coverage to an annual physical and diagnostic testing. All other costs would be the patient’s responsibility.
Consumer Driven Health Care is an overrated concept which is nothing more than cost shift to the health care user - the sole advantage is that you now have a bit more of a tax break on the extra money you have to spend out of pocket for health care.
The people most excited about HSA’s are those who are in need of another tax advantaged savings tool to complement their 401K’s, Roth’s and conventional IRA’s. What does that have to do with healthcare?
Consumer Driven Health Care does nothing to address the problems of access to care among the uninsured. It does nothing to address the problem of the exorbitant cost of prescription drugs and medical services.
With consumer debt out of control and a negative personal savings rate this past year, the well being of many Americans will be seriously at risk if forced to accept a health plan which makes them choose between paying a bill, incurring their favorite recreational spending, or seeking needed medical care.
I have been on Consumer Driven Health Plans for over 5 years. While I am grateful to not be among the 40 plus million without health insurance, the only tangible benefit I see is a lower premium from having a high deductible catastrophic coverage plan versus a comprehensive plan.