B. Capell on RAND's conclusions on CDHPs
Beth Capell, Ph.D. on the RAND conclusions on CDHPs:
Don:
There is a rather substantial literature (about 12 inches deep on my desk) demonstrating that people with high out of pocket costs fail to seek necessary and appropriate care.
To quote Health Access California:
Deductibles of $1000, $1500 or even $5000 per person exist. Out of pocket costs may be capped at several thousand dollars-or not at all. Numerous studies have shown that high deductible policies deter necessary care and put at risk the credit and solvency of average families. People with high deductible plans were:
· Twice as likely to skip medications,
· Twice as likely to fail to fill prescriptions,
· Twice as likely to avoid visiting a doctor for a problem, and
· Twice as likely to fail to get physician-prescribed care.
A deductible of only $1,000 caused a third of patients to spend more than 10% of income on out of pocket costs. Not surprisingly, patients with higher deductibles had more financial problems. Medical costs are involved in over half of bankruptcies—and most of those with medical bankruptcies were initially insured.
Beth Capell, Ph.D., for Health Access California
Comment: Dr. Capell is certainly correct. The RAND report is actually incorrect when it states that there is “mixed evidence on whether the financial incentives in the new plan designs will decrease use of necessary and desirable services.” The evidence is very clear. Financial disincentives do decrease access to beneficial health care products and services.