100,000+ employees of Sears Holdings and Darden Restaurants (WSJ)
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I wonder how it feels to know that you are at least a little reponsible for that chart…not surprising. Costs need to reflect the actual value of services, not the bureacracy of the insurance system.
I thought this was the whole point. Healthy young people always assume the risk, and often without catastrophic coverage. Was this a surprise to anyone?
Grr stupid WSJ not allowing me to read the full article. So from what I could gather, the employers offered workers a lump sum and said “here take this to the exchange.” Go figure they chose cheap insurance.
I welcome this trend. A consumer directed health plan gives the consumer more power and responsibility in how they spend. If this trend continues, only then will doctors start treating such consumers with a new angle and compete for their services on a price point.
Consumer directed health plans holds a lot of promises in containing costs. This is because consumers, once made aware about their own expenses, will learn to spend more wisely and economically.
When people understand it’s their money paying the bills and they have to make trade-offs, they generally go for Consumer Driven Health Care options.
That’s great! Let the people assume more of the risk. Healthy people will assume more risk, and therefore pay less up front.
That means unhealthy people will pay more which places an undue burden on the poor who are more unlikely to have negative health outcomes.
I am interested in moving from my current health insurance to one that is a consumer directed health plan. I am convinced by what Desai and Patel had to say.
What is the difference between a HMO and a PPO, and what makes consumer directed health plans so special given the current changes.
As more people begin to make the switch, hopefully insurance will become less relevant Kumar.
Prince: The poor are more unlikely to have negative health outcomes?
The poor are more likely to have negative health outcomes**
There is a real strong need for doctors and the entire medical field to start treating patients as consumers so we can start to see prices go down and empower the individual over his/her health practices.
All I know is that yesterday I received a 600+ dollar bill for three exams. Prices are out of touch with the consumer, something I don’t really see in ANY other industry.
In an HMO you either accept the organization’s decisions about the kind of care you will receive, and when, where, and how it occurs, or you get no care.
With a PPO the insurer will pay for care outside of its network but it will cost more. For example, my financial exposure for out of network care with my PPO coverage is 3 times that of in-network care.
A lot of PPOs also feature much more extensive networks, and choices, than HMOs.
Consumer directed plans are special because the evidence suggests that they provide incentive to reduce health care expenditures (and possibly costs by purchasing more care with cash) through voluntary action without affecting measurable health outcomes.
There aren’t a lot of other “reforms” that can make this claim.
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