The trend of health insurers launching products without traditional deductibles is accelerating, reflecting a broader shift toward consumer-centric healthcare. As member expectations evolve, insurers are increasingly offering plans that emphasize transparency and simplicity.
Eliminating deductibles in health plans is associated with improving health outcomes. Research has indicated that high-deductible health plans may negatively impact health outcomes, particularly for individuals with chronic conditions like diabetes. A study recently published in JAMA Open Network found that adults with diabetes who switched to HDHPs were more likely to experience severe complications, such as myocardial infarction, stroke, and end-stage kidney disease, compared to those who remained on standard plans.
Employer interest in deductible-free health plans is also growing, driven by concerns over healthcare costs among employees. According to Mercer's "Health and Benefit Strategies for 2024" report, approximately 40% of employers now offer low or no-deductible plans, and 15% provide coverage with no premiums.
UnitedHealthcare's Surest plan, which eliminates deductibles, is a notable example of this trend, gaining traction as the company's fastest growing commercial product. The plan also leverages price transparency tools to help members make informed choices.
"Rather than often-confusing deductibles and co-insurance, the plan uses value-based copays," Surest CEO Alison Richards told Becker's. "This means members often pay different amounts for the same service depending on the care provider and facility selected."
Health Care Service Corp., parent of five BCBS plans, is also introducing a new "alternative health plan" with no deductibles or copays for large, self-funded employers, set to be available on Dec. 1. The plan provides members with upfront information on out-of-pocket costs, encouraging the selection of providers based on quality and cost efficiency.
"By adding an alternative health plan to our portfolio, we continue to meet the diverse and evolving needs of our self-funded customers," Kevin Cassidy, president of HCSC's national accounts, said Sept. 3.
In California, the state's ACA marketplace is implementing a similar approach. Starting in 2024, the state eliminated deductibles for certain silver ACA plans and reduced copays for various services. This initiative, funded through the state's budget, aims to improve affordability for nearly 40% of the state's 1.6 million enrollees.
"Combined with federal support for premiums under the Inflation Reduction Act, this will be the highest level of affordability support that has ever been available to our enrollees," Jessica Altman, executive director of Covered California, said.