An assessment of high deductible health plans and affiliated savings accounts in the current market

ABSTRACT

This article was written as a guide for business professionals interested in exploring high deductible health plans (HDHPs) and their functions in today’s health insurance market. HDHPs typically feature lower insurance premiums coupled with higher deductibles and are often affiliated with consumer savings accounts known as health savings accounts and health reimbursement arrangements. These types of plans can be advantageous to younger and healthier consumers who do not generally incur large claims, but the average consumer should be warned that HDHPs shift costs to the insured, prompting many to avoid receiving medical attention or being unable to fund necessary procedures.

KEYWORDS:

• High deductible health plans
• health savings account
• health reimbursement arrangement
• HDHP
• HSA
• HRA
• qualifying medical expenses

Disclosure statement

No potential conflict of interest was reported by the authors.

Contributors: None.

Ethics approval: None.

Notes on contributors

Dr Shannon L. Hudson is an Adjunct Professor of Business Law for USI’s Romain College of Business. Dr Hudson teaches BLAW 263 Legal Environment of Business and maintains a civil mediation practice. Dr Hudson earned her Juris Doctor from the University of Illinois College of Law in Urbana Champaign. Dr Hudson is a licensed attorney in both Indiana and Illinois and has worked as corporate counsel for a third party health care administrator as well as general law attorney and mediator.

Ms Darla Perigo is a graduate student at the University of Southern Indiana getting her Master of Arts degree in Communication while pursuing a post-baccalaureate certificate in Computer Information Systems. Ms Perigo is employed at the University of Southern Indiana’s Romain College of Business, focusing on communication and student engagement.

Dr Jill M. Oeding is an Assistant Professor of Business Law for USI’s Romain College of Business. Dr Oeding teaches several different legal courses for USI including BLAW 263 Legal Environment of Business, Acct 461 Investment Accounting Operations, Regulations, and Compliance and BLAW 618 Legal and Social Environment of Business. Dr Oeding earned her Doctor of Jurisprudence from Indiana University’s McKinney School of Law in Indianapolis. Prior to working as a professor for USI, Dr Oeding practiced in the areas of employment law and estate planning.

ORCID

Shannon Hudson http://orcid.org/0000-0002-9483-4924