While Obamacare premiums rise, employer-based health plans shift to higher deductibles
Like most Americans who get their health insurance through their employers, the Tracy school teacher has seen his annual premiums creep up at a historically low pace since the country's controversial health care law, Obamacare, was passed six years ago.
Good news, right? So why doesn't it feel that way?sjm-deductible-1023-90Behind that stability in premiums for many of the country's 150 million workers is a trade-off: they're being shifted to high-deductible health plans, which companies are increasingly championing as a way to hold down their own health care costs. While employees may see less coming out of their paychecks, they're on the hook for more out-of-pocket costs before their insurance coverage kicks in.
"It's the biggest change in health care in America that we are not really debating,'' said
Indeed, while the rising cost of health care made its way into all three presidential debates, there wasn't a word about the dramatic shift to high-deductible plans. But employees across the
A survey published in September by the Kaiser family foundation and another non-profit revealed 29 percent of all workers were enrolled in such high-deductible health plans in 2016, up from 20 percent in 2014. Over the same time, the portion of employees enrolled in PPOs -- preferred provider organization plans, which have higher-than-average premiums but lower deductibles -- shrunk from 58 percent in 2014 to 48 percent.
Lemburg, for one, isn't complaining. The 32-year-old San Jose resident is young and healthy, so the
His premium is hardly changing in 2017 for his plan, which is often referred to as the Bronze plan because it offers the lowest monthly premiums but the highest cost out of pocket for care.
"I don't have any prescription drug coverage and I don't go to the doctor very often,'' said Lemburg, who teaches English and history at an alternative high school in Tracy.
Need for frequent medical care, however, is precisely the reason
Her 12-year-old son Jack has Type 1 diabetes, an autoimmune disease that prevents his body from producing insulin. As a result, he requires more visits to the doctor, not to mention his insulin pump, blood-test strips, back-up syringes and other related supplies. A high-deductible plan that she said caters to her son's out-of-network specialists "would be a huge amount of money out of pocket,'' said Mandy, 47, who estimates it would cost her
Still, the Kaiser survey of 1,900
The survey called that "a modest increase'' at a time when worker's wages and inflation also grew modestly, by 2.5 percent and 1.1 percent respectively.
To help bear the burden of higher out-of-pocket medical costs, high-deductible plans can be combined with Health Savings Accounts -- similar to but more beneficial than Flexible Spending Accounts -- that allow workers to pay for certain medical expenses with tax-free dollars.
For 2017, the
For Nappo and his family, it's made the transition to high-deductible health care easy to stomach.
"I like it because you can see how much you are paying for medical care," said Nappo, 56, of
That's one of the big reasons that high-deductible plans are lowering costs across the entire health care system, said
"When you go from a plan with a low or no deductible to one with a
"Or it may cause you to ask whether a certain procedure or a test is necessary.''
But at least one report suggests that the plans can have the opposite effect, and may ultimately cost employers more money in the end.
A 2015 study by the
Even so, researchers found that to keep their costs down, many employees were skipping important medical appointments completely, from colonoscopies to mammograms, both of which are free preventive care services under Obamacare.
That's why
That, he said, not only may land employees in emergency rooms with more serious -- and expensive -- health problems, but will hit the companies hard when their employees are absent from work.
Hayward resident
The 48-year-old
Wanless said he'll never skimp on getting his son the best treatment possible. But he can't say the same for himself.
"To be honest with you,'' he confided, "I don't want to go to the doctor. It just costs too much.''
------
IS A HIGH-DEDUCTIBLE HEALTH PLAN FOR YOU?
Yes -- if you're in good health, rarely need prescription drugs, and don't expect to incur significant medical expenses in the coming year.
No -- if you know that you're going to need extensive medical treatment in the coming year. You'll be better served by a traditional plan with a lower deductible and copays -- despite the fact that the premiums will be higher.
Source: Healthinsurance.org
___
(c)2016 the San Jose Mercury News (San Jose, Calif.)
Visit the San Jose Mercury News (San Jose, Calif.) at www.mercurynews.com
Distributed by Tribune Content Agency, LLC.


Options for primary care doctors are shrinking
Insurance Commissioner speaks on NMHS-United Health dispute
Advisor News
- The conversation almost no advisor is having yet
- Why advisors should offer retirement-longevity planning
- A hybrid approach outperforms the 4% Rule, researchers find
- The missing piece in most retirement plans
- Clients are bringing TikTok insurance advice into advisor meetings
More Advisor NewsAnnuity News
- Sammons Enterprises & Sammons Financial Group Respond to Reports
- The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
- Cayman Islands premier to meet with U.S. reinsurance regulators
- Investigation finds deceptive sales, churning of annuities targeting postal workers
- Corebridge annuity sales slip ahead of Equitable marriage
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- Americans without children are less confident about retirement, Allianz finds
- The conversation almost no advisor is having yet
- DELAWARE INSURANCE DEPARTMENT DETAILS REVIEW OF BRIGHTHOUSE ACQUISITION
- Sammons Enterprises & Sammons Financial Group Respond to Reports
- Court losses bring Greg Lindberg fraud victims closer to restitution
More Life Insurance News