How do high-deductible health plans (HDHPs) impact workers?

High-deductible health plans (HDHPs) have a significant impact on workers primarily by typically resulting in higher out-of-pocket expenses. These plans are characterized by lower premium costs but higher deductibles, meaning that employees must pay a substantial amount out-of-pocket before their insurance coverage begins to take effect. This structure can lead to increased financial burden, particularly for those with frequent healthcare needs or chronic conditions, as individuals may be responsible for a large portion of their medical expenses.

The appeal of HDHPs often lies in their lower premiums, but the higher deductibles can deter workers from seeking necessary medical care, as they may avoid treatments and medications that they cannot afford at the time. As a result, while HDHPs provide more affordable options up-front, they can significantly increase the overall financial risk for employees who require medical services. This highlights the importance of understanding both the benefits and the drawbacks of choosing a high-deductible health insurance option.