Healthcare Economics

: HIGH DEDUCTIBLE HEALTH PLAN

INTRODUCTION

In response to soaring health care premiums (Pauly ,1980 , employers are trying to find ways to keep the cost down to both themselves and their employees without reducing or eliminating ancillary benefits , i .e dental , disability or supplemental life insurance . Many companies are turning to a High Deductible Health Plan (HDHP ) along with a Health Savings Plan (HSA

BASICALLY , The High Deductible Health Plan (HDHP ) that is either classified as a Health Savings Account (HSA ) or the Health Reimbursement Arrangement (HRA ) was created in to

continue to provide the traditional medical coverage as well as a tax free way to help its members to increase savings for their future medical expenses (Meyer , 1983 ) when the time for such emergency expenses arrive The High Deductible Health Plan (HDHP , the Health Savings Account (HAS or the Health Reimbursement Arrangement (HRA ) will contribute to the member 's greater room in terms of the different choices over how its members can use their health care benefits . The following paragraphs will explain in detail some the popular health care plans in the United States

BODY

Why was High Deductible Health Plan created

The High Deductible Health Plan (HDHP ) offers higher annual deductibles . In fact , the member must contribute a minimum of one thousand one hundred U .S . dollars 1 ,100 ) for himself for herself and also another big amount to the tune of two thousand two hundred U .S dollars 2 ,200 ) his or her Family coverage . This is higher than the other already established traditional health plans . Furthermore , the highest amount that the member has to pay in terms of out-of-pocket limitations for Health Deductible Health Plans participating in the FEHB Program in our current period of 2007 to the music of five thousand two hundred fifty U .S . dollars 5250 ) for his or her own coverage . And , the member has to contribute another ten thousand five hundred U .S . dollars 10 ,500 ) self and 10 ,500 in to enroll his or her family in the health programs above Whatever will be the members ' preference , such member could have the services of both either in-network or out-of-network health care providers . And , the members will definitely save more money if he or she prefers to use the in-network providers . But , exception in the case of preventive care , the members should compulsorily contribute the minimum annual amount deductible for the plan can pay the standard benefits to its members . Furthermore , preventive health care services are normally paid as a first dollar coverage or after a small amount deductible , or a co-payment . Further , the maximum dollar amount reaching the ceiling amount of three hundred U .S . dollars 300 , in certain situations could apply

As soon as the member enrolls in a Health Deductible Health Plan his or her choice health plan will determine if the member can be included in its Health Savings Account (HSA ) or a Health Reimbursement Arrangement (HRA . If the member is already a member of...