A new study from the RAND Corporation found that consumer-directed health plans — which include high-deductible health plans and personal health accounts — could cut U.S. healthcare costs by $57 billion per year if they account for half of all employer-sponsored insurance.
That total is roughly 4 percent of all annual healthcare spending among the nonelderly. However, expansion of these consumer-directed health plans could have adverse side effects as well. For example, increased adoption of HDHPs may lead to decreased use of preventive services, which is currently a major emphasis of healthcare reform.
"Continued pressures to cut costs, combined with incentives in the federal [Patient Protection and] Affordable Care Act, make the 50 percent enrollment level plausible over the coming decade," said study leader Amelia Haviland. "But given the limited information available to consumers regarding costs and quality, we need to carefully examine whether additional upfront patient costs will diminish the quality of healthcare."
If consumer-directed health plans totaled 25 percent of employer-based insurance policies, researchers estimated cost savings in the nonelderly population would be roughly 1 to 2 percent of all healthcare spending. At a 75 percent saturation level, cost savings would range between 5 and 9 percent.
That total is roughly 4 percent of all annual healthcare spending among the nonelderly. However, expansion of these consumer-directed health plans could have adverse side effects as well. For example, increased adoption of HDHPs may lead to decreased use of preventive services, which is currently a major emphasis of healthcare reform.
"Continued pressures to cut costs, combined with incentives in the federal [Patient Protection and] Affordable Care Act, make the 50 percent enrollment level plausible over the coming decade," said study leader Amelia Haviland. "But given the limited information available to consumers regarding costs and quality, we need to carefully examine whether additional upfront patient costs will diminish the quality of healthcare."
If consumer-directed health plans totaled 25 percent of employer-based insurance policies, researchers estimated cost savings in the nonelderly population would be roughly 1 to 2 percent of all healthcare spending. At a 75 percent saturation level, cost savings would range between 5 and 9 percent.
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