Pay now or pay later.<\/p>\n
That\u2019s the choice facing millions of Americans required by Obamacare\u2019s individual mandate to select a health insurance plan through a state or federal exchange.<\/p>\n
Insurance companies like Aetna, Humana and Blue Cross and Blue Shield who are participating on various exchanges report that the most popular choices among consumers are middle-of-the-road \u201csilver\u201d plans that typically offer moderate premiums but high deductibles and coinsurance.<\/p>\n
Deductibles require policyholders to pay all of the cost for medical care up to\u00a0 a certain threshold before the insurance company assumes responsibility, while coinsurance commits the policyholder to paying a certain percentage for the cost of medication. (Co-pays, on the other hand, are capped at a flat amount.)<\/p>\n
The increased costs are likely to reduce the number of doctor and hospital visits as consumers become choosier. \u201cWhen deductibles and co-payments are high, patients tend to think twice about their health care purchases, making them more likely to shop around for the best deal,\u201d says health policy expert Bruce Japsen<\/a>.<\/p>\n Indeed, basic economic theory teaches that knowing the price of something impacts a person\u2019s behavior significantly. But while this may help people who would otherwise overuse<\/em> health care to scale back, it can \u2013 and most likely will \u2013 have the effect of convincing people to underuse<\/em> necessary treatment options for fear of the cost. Thus, we could end up with more people covered by health insurance but a more unhealthful population.<\/p>\n