High deductibles have never been popular for people who require a lot of care, and now those types of plans are slowly falling out of favor within America’s workplaces, too.
Less than 42% of people younger than 65 had a private health plan with a high deductible in 2023, according to new data from the Centers for Disease Control and Prevention released Thursday. That was the second straight year where a smaller percentage of Americans were enrolled in those plans, and down from the 2018 peak of 46%.
Any health plan with a deductible of at least $1,500 for individual coverage or at least $3,000 for family coverage was considered to be a “high-deductible” plan in 2023, according to the Internal Revenue Service. For this year, those deductible thresholds were $1,600 for individuals and $3,200 for families. A deductible is the amount of money a person has to pay upfront for medical care before their insurance kicks in.
High deductibles have long been a point of contention for individuals seeking healthcare, as it often means having to pay out of pocket for a significant portion of their medical expenses before insurance coverage kicks in. This can be especially burdensome for those who require frequent medical care or have chronic conditions that necessitate ongoing treatment.
The shift away from high-deductible plans in the workplace may indicate a growing recognition among employers of the financial strain these plans can place on employees. By offering more comprehensive coverage with lower deductibles, employers can help alleviate some of the financial burden on their workers and ensure that they have access to the care they need without facing exorbitant out-of-pocket costs.
As the healthcare landscape continues to evolve, it will be important for employers to consider the impact of their benefit offerings on employee well-being and financial security. By prioritizing plans with lower deductibles and more comprehensive coverage, employers can help support the health and financial stability of their workforce, ultimately leading to a more productive and engaged team.
