High-Deductible Health Plans Make Income Inequality Worse

Anyone holding a high-deductible health plan understands the dynamic: When it costs more for people to access health care, they’re going to think twice before using it. It’s a system designed to hold down costs by discouraging service.

But there’s something even more insidious about such plans. For lower income California families already living paycheck to paycheck, a single medical need can sink them deeper into financial peril. This type of health care keeps poor people poor.

That is precisely what worries Malissa Sanchez, whose employer in Los Angeles essentially forced a high deductible health plan (HDHP) on her in April when it eliminated a direct-payment system that previously allowed her to buy her own coverage.

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