Insurance Info

One of the growing trends in the health insurance industry is the increased use of consumer-directed health care. It consists of a high-deductible health plan, intended for catastrophic use. The plan is attached to a health savings account, which is used for everyday expenses (such as prescription medications and doctor visits).

In 2009, consumer-directed insurance was clearly a growth segment for individuals, groups, and families. 27 percent more people opted for such a plan in 2009 than the year before.

There are several explanations for the growth of this type of health coverage:

• The recession has made it more difficult for many people to afford coverage. As a result, families and individuals have opted for scaled-back plans with lower premiums. High-deductible health insurance plans fit the bill; premiums are generally lower for HSAs than standard health insurance plans. Those in good health would likely save money by taking this route, and many clearly agreed.
• More small companies have begun offering such coverage to their employees. The percentage of small businesses that offer consumer-directed health insurance rose from nine percent to 15 percent. Their other options were either having their workers shoulder more of the burden of premiums–or limiting or eliminating health benefits altogether! In that light, consumer-directed insurance looks even more attractive.
• 11 percent of all employers are considering offering high-deductible health insurance as the only option for their employees over the next five years. That will force some employees to have such coverage involuntarily.
• Consumer directed family health insurance allows families to more effectively budget their expenses. The balance can be rolled over from year-to-year, without taxes. If something happens to a family member one year, you can pay for it with the savings from other years.
• It also encourages those who would otherwise be uninsured to buy a plan; as a result, they will be less susceptible to medical bankruptcy. The effects of bankruptcy can devastate a family

health insurance plans slightly less appealing.

(Image: madnzany under CC 3.0)

Yamileth Medina is an up and coming expert on Family Health Insurance and Healthcare Reform. She aims to help people realize that they can find a quality health insurance plan right now. Yamileth lives in Miami, FL.

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