Wealthier pick high-deductible health plans-US GAO
By Kim Dixon
WASHINGTON, April 30 (Reuters) - High-deductible health plans, touted by some health insurers as a way to contain runaway medical costs, are attracting wealthier individuals than typical plans, a government report on Wednesday found.
The plans charge steeper yearly deductibles, typically about $1,000 for individuals, in exchange for cheaper monthly premiums. The higher out-of-pocket limits are aimed at encouraging patients to make wiser treatment decisions.
Critics say they attract the healthiest and wealthiest, leaving sicker people in the wider insurance pool and boosting overall health care costs. They also say the plans push costs onto patients and are too pricey for the poor and uninsured.
The General Accountability Office (GAO), an investigative arm of Congress, found the plans do indeed attract the wealthier, those with an average income of $139,000, compared with about $57,000 among others plans, an analysis based on income tax records.
Rep. Pete Stark, the California Democrat who requested the GAO report, argued the plans are being used as a tax shelter for the wealthy.
"They aren't the answer for providing adequate health insurance coverage for the average American," Stark said in a statement.
More than 6.1 million people were covered by such plans by the beginning of 2008, up from about 3.2 million in 2006, according to America's Health Insurance Plans (AHIP), which represents insurers such as UnitedHealth Group (UNH.N) and Aetna Inc (AET.N) and released a separate report on Wednesday.
Karen Ignagni, president of AHIP, said the government study is based on 2005 data, when only 1 million people were in the plans.
She also cited industry data that the plans are attracting a wide age range, to counter the argument they simply benefit the young and healthy.
The plans are typically coupled with a tax-favored savings account to help patients pay for medical bills. About 40 percent of those in the plans chose that option, GAO found.
"The assertion is these accounts are letting people stash assets. But if you are getting an MRI, it could be $1,000 or $1,500," Ignagni said.
Health care costs have been rising at a pace at least twice the rate of inflation, and faster than wages, for several years. The plans have also been promoted as an option for the uninsured, now at about 47 million, or about 15 percent of the U.S. population.
The number of uninsured is expected to keep growing, especially if the economy continues to deteriorate. (Editing by Tim Dobbyn)
