AP: Employees may see new insurance choice this fall

[Omaha Steve]

http://apnews.excite.com/article/20091011/D9B918EG1.html

Oct 11, 1:22 PM (ET)

By TOM MURPHY

Workers may need to do more homework when they evaluate their health coverage options this fall.

This year, more employers may include a new type of plan that can chop premium payments by nearly 20 percent and give consumers a tax break.

The tradeoff is higher deductibles, which have the potential to swamp customers with big bills. The plans, called consumer-directed health plans, vary from employer to employer and require careful comparison with other choices before making the switch.

These plans have been around for several years, but more employers are considering offering them as health costs rise and the recession fosters a new push to cut costs. Employees could see these higher deductible plans among their choices for the first time as open enrollment, the annual window when businesses allow employees to adjust their coverage, begins in a few weeks at many companies.

A consumer-directed health plan typically pairs insurance that carries a high annual deductible with an account fed either by an employer or by the employee through pre-tax contributions to help cover costs.

The deductibles - which start around $1,200 a year and can approach $10,000 for family coverage - make the customer pay more money out-of-pocket for care before most coverage starts. The idea behind this insurance is to give clients an economic incentive to spend carefully, while providing protection from devastating medical bills. Some plans also provide annual physicals and other screenings at no cost to patients to encourage basic and preventive care that could stave off bigger bills down the line.

FULL story at link.

[Ruby the Liberal]

1. The resurgence of "Major Medical" coverage.

With the twist of "covering" non emergent issues. With the twist that most people can't afford those deductibles.

*sigh*

[imdjh]

3. aka worse than useless for most people

[RainDog]

2. how many salaried employees could afford a 10k deductible?

not many, I would bet.

basically, sounds like insurance cos only want to offer catastrophic care insurance while having people pay both a premium and basic health care out of pocket.

this doesn't solve the problem of health care in this nation.

[clear eye]

4. Sounds like some of the plans in MA, a mandated insurance state,

some of which also had a cut-off at the upper end. That is, the insured paid a big deductible AND if they had a serious, expensive illness it would only be covered up to $x amount--$30K, $50K, $100K, etc.

Have to make sure there's enough left for lots of lobbying and the upper six figure salaries of the insurance execs.

Thanks, Steve, for the heads up.

[liberal N proud]

5. I am seeing that in the plans we have to review

Our daughter is seeing that exact scenario as is my wifes. We will get our plan this next week.

Both plans have the varying deductibles.