Five insurance companies in Oregon have developed new health insurance plans that offer free care for illnesses but charge more for treatments that have been deemed overused. Insurers are trying to provide employers and employees with choices that save money and reduce medical spending.
The idea is that the free care for illnesses would include financial incentives to get proven treatments and taking medications regularly. Consumers would receive free treatment for conditions related to diabetes, heart disease and depression. The catch is that policyholders would have to pay larger deductibles and co-pays for overused treatments like knee replacements, hysterectomies and heart bypass surgery.
But the goal of the new plan is to help people with chronic conditions save hundreds of dollars a year.
These new health insurance plans will first be used by employers to curb the rising costs of providing health benefits for employees. The plans will complement already implemented wellness programs that have been proven successful. Similar to the way wellness programs help an employee’s decision making about well-being, these new health insurance plans are meant to improve decision making about health care services and surgery.
According to USA Today, there’s not yet solid proof that the new insurance plans will save employers and employees money. But the theory behind it is that people whohave to pay more for their health care will typically make different choices, instead opting for cost-effective treatments over more expensive, overused treatments.
Only time will tell if this new health insurance policy will curb the costs of health care and help policyholders save money.