Thin Protections High-Deductible Plans Provide Little Comfort

As part of an overall health reform package, some California policymakers are promoting, even mandating that all Californians have – at a minimum – health plans with high deductibles and high out-of-pocket costs. Proponents believe that this health coverage, as expensive as it is to use, at the very least can keep people from losing their assets or even filing for bankruptcy. Such high-cost high-deductible plans have been popularized and promoted by the Bush Administration, which is attempting to make the plans more attractive by offering individuals a way to set aside money away, tax free, in Health Savings Accounts. Such accounts are only allowed if a person buys a highdeductible health plan.