What 401(k)'s Can Teach Us About Consumer-Driven Health Plans

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The rise in health care costs will not be solved until the american public has some vested interest in how much a procedure or prescription cost. As long as all we are shelling out is our copayment with no regard for what the hospital, doctor, or drug company is charging, there is no incentive for any provider to contain costs. Until consumers begin to make their choices based on more than the closest location to see a provider, we will continue to see premiums rise at astronomical rates. The american consumer has been very efficient at driving the costs of products down through increased competition and shopping for the best service. We need to apply these same attributes to the healthcare system and quit treating like it is in someway exempt from competition. Make your providers actually provide. Consumer driven plans are a start.

S. Allen of IN 2:54PM August 15, 2008

Consumer Driven Health Care is not about telling your physician you know more than he does; it is about asking is there a less expensive way to reach the same treatment goal. Here are three true examples: My brother, suffering from a respiratory infection asked his physician (who was suggesting more tests to confirm the diagnosis) how the treatment plan would differ based on the results of the test. The answer, no difference. The cost of the test was avoided. An employee recounted to me last week how after switching to an HDHP he discovered his prescription was not the $50.00 month he had been spending but actually $150.00. The physician didn’t even realize he had put him on a tier 3 drug and quickly wrote a prescription for a generic. The employee saved $46.00 a month and the employer saved $100.00 per month. Lastly, an insurance agent I met recently told of how his wife had dislocated her shoulder and needed surgery. They are on an HDHP with an HSA. When the physician ordered an MRI to confirm the diagnosis, the patient asked if the MRI would reveal anything more than a less expensive X-ray would. The answer, no.
All of these questions resulted in less expensive, rather than less effective, health care. And they accomplished that with no new technology, no challenge to the physician’s expertise, just a few simple questions. That is the essence of Consumer Driven Health Care.
Patrick Jarrett
Health Savings Administrators

Patrick Jarrett of VA 2:31PM August 15, 2008

Michelle,
We would love to explain to you how HSA/HDHPs work as your statement "I've written in the past about how consumer-driven health plans haven't exactly caught fire with consumers. Turns out the high-deductible health plans often end up costing consumers more out-of-pocket than they can afford, especially if they actually, you know, get sick and need to use them." could not be further from the truth.
Call any time
Tim Morales
HSA Clearing Corp

Tim Morales of WI 12:07PM August 15, 2008

Americans do not "work harder" than Canadians, Dee.
The idea of consumer-driven medicine driving down health care costs is nothing but your doctor saying you need a test and or a treatment, and YOU saying "no, I don't, Doc. Ha, Ha, I'm smarter than you." IF YOU THINK I"M LYING (OR STUPID), SHOW US HERE ONE EXAMPLE THAT IS FUNDAMENTALLY DIFFERENT FROM THAT.
Conseumer driven medicine means the rich buy and have the best and everyone else is to skip health care because gas, food, and the mortgage payment squeezed it out.

Daniel David of NM 10:10AM August 15, 2008

Fot those that believe a national health plan is the answer just refuse to see the current status as it really is. The consumer has very little knowledge of healthcare cost's. Why is it that people view healthcare as unaffordable. There must be transparency and accountability of medical services and costs. It is not fair to assume consumers will not understand the medical services delivery market. Given information and engagement,many people will do well. No matter the economic options people have, not every one will figure it out. Ex: 401K's. However, engage the consumer with education/knowledge, a financial interest, and more people will get it. I do not understand the notion the if CDHP's can't fix everything we shouldn't use them. That is nonesense. For those willing to look beyond the short term, and understand how much money is being spent on their behalf, they may see that there might be a better way to provide health insurance for themselves. For those that see CDHP as a benefit for the "healthy and wealthy" only, you really do not understand how the plans work over time. You can actually make a great case for HSA's benfiting the middle income as much if not more than higher income group.

Tom Lane of PA 9:40AM August 15, 2008

Anyone in the US who thinks national healthcare is the answer has not looked into the Canadian or any other Socialized medicine system. British Columbia, only one of the 10 Provinces & 3 Territories in Canada, in July 2008, had already used up 100% of its' monies allocated it for 2008. In July, another $54 Million was infused into B.C. for healthcare, and it is already used up b/c of Canadians who were already 'waiting' for healthcare. The entire nation of Canada only has about 32 million people; Vancouver, the largest city in B.C., only has about 2.3 million people, and B.C. has already used all of its' healthcare $! Their personal taxes are about 50-60% already, they are not even allowed to deduct their home mortgages, and that still doesn't cover it! High taxes like that will NEVER be seen as a positive in the USA! We work harder & our economy is better b/c we have incentives! Doctors will never work in those non-incentive environments! One problem in Australia already is that natives don't want to be doctors there.....check it out yourself, most doctors in Australia are from India and Pakistan! Check out any Healthcare website from Canada to see how lousy the national system really is, and THEN decide who you will vote for in November!

Dee of CO 9:36AM August 15, 2008

Every single sector in the economy embraces consumerism except health care. HSA plans are the way of the future, as they are the only feasible way to lower health care costs. Every single aspect of the health care system stands to benefit when consumers actually choose and pay for their own care (as opposed to just shelling out a co-pay).
Certainly a socialized medical system with no private health insurance will drive us EVEN FURTHER backwards when it come to efficiency in the health care system. This is America, with consumer choices, a free market, and open competition. Let's make health care no exception.

Vik Kashyap of CA 11:42PM August 14, 2008

The more "choices" of insurance products there are, the more national treasure will be wasted on meaningless marketing like that from the AFLAC duck and the GEICO gecko. (They sell insurance, not something else, we recall.) Also, the more the choices, the more commissions you will pay, and the more your pre-existing conditions will be excluded.
Billy Mays, TV salesman for Oxiclean and Kaboom cleaning stuff as well as the Hercules picture-hanger hook is ALREADY on TV selling health insurance. Your employer can't wait to drop your group plan and send you to Breathless Billy. Elect your Democrats, demand your national plan and stop paying the commission dude and the duck.

of 7:46PM August 14, 2008