Do HDHPs save money?

This is the question that Zhang et al. (2017) attempt to answer using data form people who switched to a high-deductible health plan (HDHP) compared to those who stayed in the same plan.  They found: After enrollment in HDHPs, 28 percent of enrollees changed physicians for office visits (compared to 19 percent in the Traditional…

Health Insurance for Part Time Workers

The goal of LyfeBank is basically to serve as a 401(k) for health insurance.  Employers can make contributions to the employees health insurance into a fund and workers can use this money to buy various health insurance products, reimburse themselves for co-payments or deductibles, or pay for medical costs directly. LyfeBank has two key innovations.  The…

Federal Health Care Regulation: Taxation

Today we will discuss how the tax code affects health care. Tax exemption of employer-provided health insurance. “In 1943, the Internal Revenue Service (ruled) that employees could exclude the value of employer-paid health insurance premiums from their taxable income. In 1954, Congress excluded by statute the value of employer-purchase health insurance from gross income.” To…

Adverse Selection in Action

For individuals who have recently lost their job, Carolyn’s Blog advises them how to get health insurance coverage. “Unless you have a pre-existing condition you should only stick with COBRA until you find a private health insurance plan.  Believe it or not, if you go with a High Deductible Health Care Plan (HDHP) for a…

HRAs vs. HSAs

On Friday I posted on Consumer Driven Health Care.  These consumer driven health plans (CDHPs) involve individuals having direct discretion about how health care dollars are spent.  If you are interested in CDHP, there may still be some confusion over which H?A you prefer.  Is a HRA (Health Reimbursement Account or Health Reimbursement Arrangement) or…