Question

What are the advantages and disadvantages of a high deductible health plan for both the customer, the employer and the insurance company?

Answer 1

Advantages of HDHP for customer,the employer and the insurance company is

i) Lower monthly payments for medical coverage it benefits to employer.

ii) It provides adequate coverage with low premium it benefits to customer.

iii) Because of low premium it attracts more people it benefits insurance company.

Disadvantages

i) Not suitable for long term medical condition and frequent needs.

ii) Employer will have to provide other payment to its employees for insurance as it's deduction gets over very soon because of low premiums.

iii) The low payments may increase over time and when the premium increases advantages decreases.