Rising Employer Costs
Half of all employers purchase high deductible health plans for their employees as a way to manage their increasing health care premiums. While on the surface employers seem to receive the greatest benefit from these new plan designs, many are concerned about the stress these high cost-sharing plans place on their employees and fear the long-term negative impact on employee health, satisfaction, loyalty, absenteeism, presenteeism and ultimately on recruitment and retention.
Providers Becoming Creditors
With the growth of high deductible plans, doctors and hospitals have become some of the largest unsecured creditors. Collecting larger amounts from patients is a losing proposition; the average provider receives less than 50 cents on a dollar owed. And, there’s no end in sight – by 2020, Deloitte predicts 40% of commercial revenue will be the responsibility of individual patients.
Financially Struggling Consumers
The average employee has less than $400 available for emergencies and nearly 80% live paycheck to paycheck. Employee wages have not kept up with skyrocketing out of pocket health care costs. Early evidence suggests that high deductible health plans often result in higher costs in the long run due to avoidance of necessary care in the short run. High deductible health plans have become hazardous to employees’ health, finances and productivity at work.