More workers enrolling in catastrophic health plans, analysis finds

Nearly 56% of private-sector workers signed up for high deductible health plans (HDHPs) in 2021, the highest percentage to opt for such insurance coverage since 2012, a new report suggests.

Enrollment in HDHPs—also known as “catastrophic” plans because they offer low monthly premiums but require members to pay higher upfront healthcare costs (with deductibles of at least $1,400 for individuals and $2,800 for families in 2022)—has steadily risen over the last decade after hitting a low of about 30% in 2013, according to a late January ValuePenguin analysis.

Since 2019, the report found, more than half of all US workers have signed up for HDHPs, which often appeal to younger, healthier workers who don’t use their health insurance regularly. The plans can be combined with tax-free individual health savings accounts (HSAs) or employer-sponsored health reimbursement arrangements (HRSAs) to offset out-of-pocket expenses.

Divya Sangameshwar, a ValuePenguin health insurance professional who also acts as spokesperson, noted in the report that “it’s not surprising that HDHPs are growing in popularity” given rising health insurance costs. The plans, she said, can be good options for people who are generally healthy, have HSAs, and can afford the deductible—but they’re not for everyone.

“A plan like that may force you into skipping care altogether or not filling prescriptions because you worry about going into debt to afford care,” Sangameshwar said.

The ValuePenguin analysis is based on data from the State Health Access Data Assistance Center’s State Health Compare.