tag:blogger.com,1999:blog-730349571779849597.post3956659163737442030..comments2022-10-13T12:33:40.195-04:00Comments on Dr. Keynes Was Right: Deductive ReasoningRobert Younghttp://www.blogger.com/profile/09056808374481236610noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-730349571779849597.post-26890874574865469532016-02-12T11:02:53.329-05:002016-02-12T11:02:53.329-05:00...a working paper on what happened when a large (...<i>...a working paper on what happened when a large (unnamed) employer switched from a more generous health plan to one with a high deductible. The typical worker in the company was young and Internet savvy, and earned more than $125,000 a year. The company gave employees a web tool to compare health care prices, and a health savings account for the full amount of the deductible, so they wouldn’t actually have to pay any bills out of their salaries.</i><br /><br />Do healthcare economists follow a special curriculum that includes no mention of the concept that other commodities than money (time, for instance) have value? The way I understand this study (there was a longer description on <i>Vox</i> a few weeks back), these workers went from a plan where a visit to the doctor cost $0, plus the time it took to go to the doctor; to a plan where a visit to the doctor cost $0 (net), plus the time it takes to go to the doctor, plus the time it takes to use this "web tool to compare health care prices", plus the time it takes to manage an HSA (a new bank account they didn't have before, of a specialized type you've probably never heard of if you don't have one). The cost of healthcare for these people shot up dramatically--probably more than doubled--and a Harvard economist was surprised that demand went down.<br /><br />And another thing while I'm ranting: Note that HSAs work differently to FSAs. You don't lose the money left in your HSA at the end of the year. Optum Bank (the company that administers mine) markets them as a kind of adjunct retirement plan--be stingy with your healthcare spending now, and you'll have money left over for those Medicare supplement premiums later on. You can even invest that money to earn returns on it (HSAs don't seem to pay interest as far as I can tell). That gives you a strong incentive not to use your HSA: spending that money is like taking a withdrawal from your 401(k).<br /><br />The closing paragraph is just beautiful: "Some health economists say the solution to the problem may be smarter but more complicated forms of health insurance." Yes, obviously the problem is that it doesn't take enough time to figure out your health insurance.Adam Bradleyhttps://www.blogger.com/profile/11785997295611369546noreply@blogger.com