The first three plans are slight variations on traditional health plans. However, all four plans are sculpted for specific companies that have a particular type of workforce and different perspectives on their employees. Read through the descriptions of each plan and see what you think.
"Micro-insurance: It typically costs one or two hundred dollars a month, and covers very little – either by restricting coverage to only a few kinds of conditions and care, or setting a very low limit on the total amount of coverage in any given year, often as low as $25,000. Such plans are popular among both employers who have little or no commitment to their employees’ health, and employees who are paid little, are young and healthy, and don’t expect to stay long with their current employer.
Catastrophic-only: more like other forms of insurance in covering only extreme levels of unexpected expense. These usually have a very large deductible, so that ordinary care expenses are paid for by consumers, rather than even creating any claims processing costs for insurers. These plans are popular among employers whose employees are well-paid and relatively healthy, and are often offered at premiums that are competitive with the micro-insurance plans.
Consumer-directed health plans: combine a catastrophic coverage approach, including high deductibles, with personal spending accounts that can grow and gain interest over time, are increasing in popularity. Many of the employers who offer these plans also cover “preventive” care on a first-dollar basis, in order to gain the advantages of keeping their employee health and happy at work, thereby improving both employee and employer performance.
Health contingent plans: It provides good coverage at modest premiums, but only insofar as employees agree, and fulfill their commitments to becoming or remaining healthy. Such plans are particularly popular among employers who consider their employees as valuable assets, and want them to be healthy for the full range of performance impacts their health can have."
MacStravic goes on to mention some specific examples of companies and even the state of Rhode Island that are applying wellness based plans. It’s sad that many people will only improve their health in exchange for lower insurance premiums but if the concept works then why not use it? Not only will this strategy help keep premiums down but long-term it could have many positive affects on our society as a whole.
Would you be willing to either maintain your good health or improve upon it by keeping your cholesterol and blood pressure down if your employer offered lower premiums in return?
