September 01, 2004
Consumer health plans divide risk pool
Consumer directed plans -- high-deductible catastrophic plans accompanied with a savings or spending account -- are gaining in popularity because they are less expensive. Traditional group plan premiums are lower because risk is spread among the healthy, sick, young and old -- the healthy, in effect, subsidize care for the sick. If healthy people choice consumer directed plans, the group plan is left with more sick people -- raising healthcare costs and premiums.
Posted by Tom Troceen