How Informational Imperfections Lead to Sub-Optimal Solutions in Health Savings Plan and Potential Remedies in a Competitive Marketplace
Year: 2019
Type: article
Abstract: In the growing trend of consumer-driven health insurance, more consumers than ever have access to a high-deductible health plan paired with a health savings account, where consumers can save pre-tax income for healthcare but also face higher out-of-pocket prices, in hopes that consumers will become smarter shoppers. The Health Savings Plan is successful at lowering costs, but at the expense of consumers lowering their adherence to healthcare, raising health risk. Even in a competitive market, HSP plan designs require smart shoppers and more active healthcare self-management, but without dealing with the informational imperfections that need to be overcome to encourage this intelligent consumerism. In order for HSPs to succeed, they need to be aligned with policy and innovations that mend these informational deficits, but even then, policy makers need to be aware that HSPs do not tackle the main problem in the US healthcare marketplace.
Author: Jacob Gene Dengg
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Funder: University of Denver
OpenAlex ID: W3000885976