Raising Health Insurance Deductibles

Their Votes

Their Reasons:

Byrnes: While cost sharing via raising deductibles is not a perfect solution, as we all know, it does help to reduce the cost of health coverage overall. Raising cost sharing results in a situation where actual patients are forced to share in the cost of their health coverage, and thus become much more likely to evaluate the treatment they're receiving. In the end, this means that weeding out low-value healthcare can occur at the consumer level. That reduces overall health spending.

Bloink: Increasing deductibles does nothing to mitigate the intense affordability issues that we're facing when it comes to health insurance. For years, plan sponsors have increased deductibles and other types of cost-sharing in an attempt to spread the cost of health care. The approach completely ignores the reality of the situation as health care costs continue to rise and taxpayers are forced to shoulder more of the cost, particularly due to the now-expired ACA marketplace subsidies.

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Byrnes: In this debate, we also have to remember that many types of preventative care are covered by high-deductible health plans before the deductible is satisfied. By increasing deductibles, we aren't reducing access to preventative health care that can serve to prevent more serious health conditions. Preventative care continues to be covered regardless of the deductible and other cost-sharing measures.

Bloink: Rising deductibles, at best, discourages individuals from seeking low-value health care--because they'll have to shoulder at least some of the cost. On the other hand, rising deductibles can discourage individuals from seeking valuable preventative care. This results in a situation where patients delay relatively low-cost claims (because they haven't satisfied their deductible) until the patient becomes much sicker and the claim becomes a high-cost claim.

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Byrnes: High-deductible health plans do reduce overall health spending at the consumer level--thus serving to drive down costs of health services generally under basic supply and demand principles. The system is particularly effective when paired with a health savings account that gives consumers greater control over their health spending. When consumers are forced to make decisions about the health care they receive, they can make decisions that best serve their needs—and aren't going to engage in wasteful spending because, after all, it's at least partially their own dollars that are on the table.

Bloink: Addressing the root cause of skyrocketing health care costs is the only way to really address the affordability issue--and that means starting at the beginning. Properly managing preventative care and chronic conditions is the way to reduce overall health costs. Rather than focusing on the cost issue, we need to focus on why the costs are rising so rapidly to begin with.