High deductible health plan offerings are expected to explode this year. More than 9 in 10 employers expect to offer high-deductible plans in 2019. HDHP growth has been fueled by rising healthcare costs. They also help employers reduce their financial healthcare liability. Understanding the impact of HDHPs on the market and your wallet will help you save more and maintain the medical coverage you need.
What Will HDHP Growth Do For Healthcare?
Let us show you what HDHP growth means for your healthcare plan selection and medical costs this year and for years to come.
First, the health plan out-of-pocket gap is narrowing. HDHPs seem scary for employees because they have higher out-of-pocket costs, in the form of deductibles when compared traditional plans like PPOs and HMOs. That was true. It is however no longer the case. When comparing health insurance plans over the years, you might have noticed that the yearly deductibles for PPOs and HMOs have risen significantly. Each year, annual deductibles for PPOs and HMOs get closer to merging with HDHPs.
HDHPs will likely grow to be as common as HMOs and PPOs in the next few years. Healthcare costs are moving the market in this direction, the only question is, how fast.
HSA growth will follow HDHP growth. Most HDHPs are HSA-eligible healthcare plans. More HDHPs mean more Americans are eligible to open an HSA. HSAs provide the only way consumers can directly combat the costs of healthcare. Plus, HSAs allow you to save (and invest) tax-free for retirement!
High Deductible Health Plan FAQs
- HDHP Overview
- High Deductible Health Plan Benefits
- Expected HDHP Expenses
- Moving From a PPO/HMO to an HDHP
- HSA Tax-Free Savings Options
- HSAs & Retirement Savings
Rising healthcare costs are driving HDHP adoption. The good news is this movement increases HSA eligibility. The result is more Americans can save dedicated tax-free funds for out-of-pocket health costs. HSAs might just be the only rose in the thornbush of rising healthcare costs.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.