Are Consumer Directed Health Plans A Good Idea?

Insurance costs have increased dramatically over the last few years.  This has caused many people to evaluate their plans.  They are looking into new options, including the consumer directed health plans.  However, people question their validity.  Are these plans a good idea?

 

Spend Less On Your Health Care

 

One of the reasons why these plans are great is because the average person ends up spending a lot less on their health care costs.  This not only saves the employee money, but it also saves the employer.  Interestingly, though, the drop in spending was directly tied to fewer preventive tests and screenings.  Does this mean that people spent less because they knew they would have to pay?  The answer is unclear.

 

Higher Deductible

 

With this type of plan you can expect your deductible to be higher.  This is one of the reasons people opt out of basic preventative services.  They don’t want to incur high personal loans because of a procedure.  After all, many of these people are already paying off a payday loan.  And since the deductible is higher, many people simply overlook health care entirely.  They pay for it simply to reduce risk.  If this is the case, you might want to look into options that will get you more for your money.

 

At the end of the day, a consumer directed plan could be the option you have been searching for.  However, it is not everyone’s best option.  Evaluate your type of plan and the type of coverage you are expecting before you make a rash decision.