Benefits Consulting

If It’s Broken, Fix It: Why High Deductible Health Plans Don’t Work

By December 28, 2021 February 23rd, 2022 No Comments
Doctor consulting patient

Let’s talk HDHPs –– High deductible health plans –– a type of health insurance plan introduced as a potential solution to catastrophic health events or illnesses. These lower premium and higher deductible plans were created to protect Americans facing unexpected medical needs. But –– the question we’re asking today is:

Is a high deductible health plan really beneficial?

Lower insurance premiums and significant tax advantages for HSAs –– should be a match made in medical insurance heaven, right? Not so fast.

While high deductible health plans may serve as effective long-term savings and tax savings plans, they’ve proven themselves to be beneficial for highly compensated employees  –– not necessarily for a more financially diverse employee group.

This proposed solution to the lack of accessibility and affordability for most Americans has ultimately failed many. And our team believes that if it’s broken, we should fix it. So, let’s look at how HDHPs are hurting the population and the strategic approach Totem takes to protect your employees.

Why High Deductible Health Plans Don’t Work

  1. HDHPs are widening healthcare inequalities as deductibles continue to increase and a large percent of the population has deductibles so high that they are more or less uninsured. And a trending decision many in that situation face? Whether or not to receive medical attention when they need it most. 
  2. HDHPs are forcing Americans to decline the treatment they need, all due to fear of how they will pay out-of-pocket costs. In addition, a decrease in preventative care negatively impacts Americans, as the disregard for routine medical check-ups often results in serious illnesses or life-changing episodes such as heart attacks and strokes.
  3. While HDHPs were initially proposed to save money, the ugly truth is that with these plans come outrageous out-of-pocket costs. The premiums are low and appear affordable, but for low-income populations and those with chronic illnesses, the reality is that outrageous out-of-pocket costs are a financial risk everyone takes when they enroll in an HDHP.

As we said before, our approach at Totem is to fix broken things and HDHPs have found themselves on our list. We work alongside our clients to identify the health plans that best support their personnel — and we don’t just prescribe what’s trending. This is because we consider our work as much more than consulting. We pride ourselves on educating both clients and their employees about the world of medical benefits and how to navigate its tricky waters. 

Because of this — we’re thrilled to introduce partners like SimplePay to our clients as a real solution to the problems faced by so many. SimplePay reimagines the way healthcare works. They make it easy and affordable for people to choose the best care, leading to better utilization, healthier outcomes and lower costs for everyone. With the incorporation of payment plans, upfront cost transparency, and clear monthly statements, SimplePay provides a streamlined and genuine approach to healthcare.

Our job as benefits consultants, and your job as HR Representatives, is to take care of employees and make healthcare better for them. This is done by choosing plans and partners that decrease costs and increase healthcare quality. The reality is, one of the biggest problems we face today is healthcare. But lucky for you, the team at Totem loves solving those problems. 

It’s time to make high deductible health plans a thing of the past. Let’s leave their negative impacts behind and discover what it means to really take care of your employees. For more information on working with Totem, give our team a call at 770-295-1600.