Anyone who’s had a high deductible healthcare plan knows – they don’t work.

High deductible healthcare plans were designed to reduce the overall cost of coverage while maintaining high maximum benefits. In essence then, they only offer coverage if your health really takes a dive. For that type of coverage, you might as well have critical illness insurance.

Health wonk Joe Paduda even says:

Instead, patients avoid care they should get, go bankrupt trying to pay sky-high deductibles, and even worse, don’t do a damn thing to get high utilizers to modify their lifestyle or care decisions.

Lazy benefits managers and employers looking for a quick fix to rising premiums continue to tout HDHPs despite the warning signs. Now, over a decade after these plans first became widely popular, some employers are finally getting the message.

I’d go so far as to argue that HDHPs help drive health care costs up; sick folks get sicker because they can’t afford preventive and routine care, while the 20% of members who incur 80% of the healthcare costs blow thru their deductible in March and then have no financial inhibitions.

It just doesn’t make sense that way. Save money by getting a solid fixed indemnity plan, and life insurance with living benefits (critical / chronic illness benefits). Your wallet will thank you.