What Is Zero Premium Health Insurance?
Zero premium health insurance is a form of a high-deductible health plan. High-deductible health plans were created in order to help lower health care costs and make health insurance more affordable for the uninsured.
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History
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High-deductible health plans came into existence in the early 21st century when Congress passed legislation giving tax preferences to funds set aside for paying health care costs. One of the requirements of the programs established by the legislation is enrollment in health insurance plans with a minimum deductible of $1,000 for an individual and $2,000 for a family.
Features
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In a zero premium health insurance plan, the customer doesn't pay premiums. Instead he pays larger deductibles when he visits a health care provider. As of 2007, three million workers were insured with such plans.
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Considerations
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According to research conducted by The Commonwealth Fund, these plans may actually undermine the two main purposes of health insurance: reducing barriers between patients and care, and protecting against financial burdens. They found that, among other problems, adults insured by these plans had difficulty accessing care; low income families have difficulty paying high deductibles and medical debt was higher among those with higher deductibles. As reported by CBS, The Academy of Pediatrics fears that families with high-deductible plans may "...delay or avoid seeking care" due to high deductibles.
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References
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