Revisiting My Mantra: "Co-Pays Suck - Get Rid of Them"
Yes, I did utter those words at an MMAC Forum several months ago. Pretty eloquent, huh?! In the context of discussing how "qualified" High Deductible Health Plans (HDHP's) combined with HSA's drive behavior change - thus reducing health utilization - the idea is (just) one key component of the Consumer Driven movement.
At a May 15th Healthcare Conference in Chicago sponsored by the Illinois Chamber of Commerce, I heard an intriguing presentation describing the importance of "Value Based Insurance Design" (drum roll please for just what the insurance business needs, another acronym: VBID). The issue is, do High Deductible Health Plans (or even modest Co-Pays) create financial barriers that cause people with chronic conditions to be non-compliant with drug and other therapies thereby increasing, instead of lowering, cost?
There will be much debate about this and having implemented many HDHP's, I know well the issues. Will the considerable premium savings of the HDHP be banked in an HSA or spent on the rent or higher gas prices? If banked, there are no "barriers" for health compliance. In fact, there are rewards; ie., we can spend enormous additional premium sums (or taxes) so that insurers (or Big Brother) can manage our care; or we can manage our own care and keep the savings!
I still think "Co-Pays Suck".
Labels: Access, Shopping for Health Care
posted by Jon Rauser @ 7:48 AM
2 Comments
As President & Owner of a successful health insurance brokerage in downtown Milwaukee - 
2 Comments:
It is not the copay or the high deductible that work or don't work in controlling healthcare costs. It is the information on costs and the lack of transparency in the EOB doctrines. Under Major Medical type of programs, everyone was informed of the charges, and respective liabilities. Get rid of the cost-shifting and the network contracts and you'll see how less costly health care can really be.
Kent Schroederson
I agree and that's why my business charges the same absolutely upfront and transparent charge for every scan. Healthcare consumers are forced to deal in a "black hole" of information and how can they make smart chocies then?
The more information providers offer the more informed and value oriented choices consumers can make, maybe that's why most providers don't tell patients what they charge up front.
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