Challenges of high-deductible plans

High-deductible plans have been growing more and more popular as a way of combating rising premiums. In exchange for reducing a known expense (premiums), people who have high-deductible plans run the risk (but not certainty) of paying more if medical issues arise. Marketplace published an interesting article about one doctor choosing a high-deductible plan for his family. The doctor recounts the dilemma he faced after experiencing a racing heart. Should he go to the emergency room, where he should expect to pay $2,000 or more, or should he rest and risk a heart attack? Despite being a doctor himself, it was a difficult call to make. How much more difficult would it be for patients without clinical training?

High-deductible plans clearly are not a silver bullet for every patient and for every situation. In non-urgent situations, high-deductible plans can be one effective way of imposing market discipline if there is competition and free flow of adequate information. The article notes that higher-income earners did not really shop for health care efficiently, even when they could compare prices. Prices are, of course, only one piece of information; quality is another piece of crucial information. Without either price or quality information, it would be difficult for consumers to make an informed decision about value. Until such information becomes more widely available, high-deductible plans remain crippled in terms of their intended usefulness.