Cut Insurance Costs With High Deductibles

The article “Bare-Bones Health Insurance Criticized” (June 3) reported the efforts of the advocacy group Families USA Foundation to curtail the marketing of high-deductible health insurance policies.

Health insurance policy cost-sharing features such as deductibles and co-insurance provisions encourage the insured to use medical services more prudently.

The $5,000-deductible policy decried by the lobbying group is nothing more than an extension of this principle. The average person will consume fewer health-care services if they are covered under these high-deductible policies. This means fewer claims for medical-care providers and insurance companies to process. Both of these savings translate to lower health insurance costs.

The potential savings in health insurance costs are enormous. Dr. C. Everett Koop, the former surgeon general, has said that one of the most serious problems facing our health-care system is the large number of people with imagined illnesses seeking medical attention.

Much effort is being spent on curtailing rising medical costs. One of the most effective methods available would disappear if groups like Families USA Foundation get their way.

J. RICHARD HOGUE, Fellow, Society of Actuaries, Granada Hills