What are the risks of a high deductible plan?
At GiveForward, we recently expanded our benefits fairly significantly. It was a proud moment for me and Ethan to finally be able to offer our team both long- and short-term disability, a modest amount of life insurance, and a choice of healthcare plans.
Previously, we had a single plan option with a $350 deductible to prevent our employees from being in the same situation a lot of families on our site face. I thought that, given the nature of our work, most people would opt for more coverage. But much to my chagrin, the majority elected policies with $750-$2000 deductibles.
As CEO of a start-up with a lot of younger employees, I can’t say I was entirely shocked, but I couldn’t help being concerned that we had a group of employees who could not afford their deductibles.
To get a better handle on the personal financial risk our team was facing, I decided to send out a little survey to see if people knew what their deductibles were and to see if they would be able to cover them through a personal savings account, checking account or credit card.
The results were a little disappointing. Roughly 25% of the team has a deductible they can’t cover with personal finances. This got me thinking: If a quarter of my team can’t cover their deductibles, what about the general population?
How often do Americans choose high deductible insurance policies and what are the financial risks they face? As the costs of health insurance premiums continue to rise, many American families are choosing high deductible health plans to help save on monthly bills. more...
