This Is The Last…

My company has just implemented a health plan called a CDHP which stands for Consumer Directed Health Plan. Roughly translated as you the consumer will pay more than you did before. I received a company email indicating that as of January 1, 2006 we will be switching from a PPO to a CDHP. We were given no choices in the matter the explanation was pretty vague, it informed us of the lack of control set on health plan companies allowing them to raise costs for the companies and their employees.

The letter went on to list the exact cost increase the company would be subject to if they continued with our current health plan yet when it came to listing our hit it simply stated we would receive a moderate raise. Along with the email we received a couple of attachments further explaining a CDHP. Being that I’ve never dealt with one I was grateful for the information. While reading the letter I think I blew a gasket (I don’t actually know what that means I just really wanted to say that). First off our annual deductible will rise from $25o to $1100. They tried softening that blow by letting us know that they will contribute $550 to each of our HSA (Health Savings Account). How nice, right? Wrong I am still seeing a $300 annual increase in my deductible.

So what’s an HSA anyway? Yeah, I asked the same thing. Apparently HSA’s have been around since 2004, they have been set up as bank accounts used specifically for “approved” health expenses. The funds that you acquire on a yearly basis cannot be used for any other purpose other than medical expenses. If you do use those funds for any other purpose you will receive a 10% tax penalty. These funds do become fully available to you once you turn 65. Even though I will not loose my funds they become locked which wouldn’t be an issue if I had more control over the amounts deposited into the HSA. At time of enrollment I will be able to choose an amount I wish to be deducted from each paycheck; unfortunately it’s hard to gage an appropriate amount. If I choose too high, will I have enough medical claims to make full use of my funds? Or am I just forfeiting money until the age of 65?

The funds can be used for family members not covered by the health plan just as along as it’s an “approved” medical expense. What the hell is an approved medical expense? It’s hard enough to sift through all the medical gargle they shove down your throat, now they throw in the word approved. Approved by whom? A medical expense is a medical expense! You can’t confuse it with car or mortgage payments! If it’s a medical expense it will be billed from a medical facility. Does approve imply eye exam but not the glasses? Dentist check ups but no procedures?

Of course these are questions usually answered in information provided in your welcome package. You know after you’ve signed up. Under these methods the consumer can’t know whether something will benefit him/her until after they’ve agreed to enroll. The thing that really grinds me is the letter starts off saying something to the extent of “now you can control how much money you want to invest into your health plan” and “were putting the decisions in your hands”. Thanks a whole lot but how about next time you start by saying hey guys who likes mass sodomy?

-With A thorn In My Side