An Unequal Burden: The True Cost of High-Deductible Health Plans for Communities of Color

Abstract

During 2006 and 2007, one out of every three Americans was uninsured for some period of time. These nearly 90 million Americans faced signifi cant barriers to care, worse health outcomes, and even a higher risk of premature death.1 The heavy burden of uninsurance was especially harmful for communities of color. Although racial and ethnic minorities represent a third of the U.S. population, people of color made up more than half of the uninsured in 2006 and 2007.2 As the United States grapples with providing equal access to health care for all Americans, some policy makers have touted using high-deductible health plans as a way to expand coverage. High-deductible health plans are often coupled with health savings accounts (see “Health Savings Accounts” on page 7) and may be attractive because of their lower premiums. However, the full costs associated with high-deductible plans far exceed their premiums, and these expenses are disproportionately unaffordable for racial and ethnic minorities. This issue brief discusses three serious concerns that make high-deductible health plans less helpful—or even potentially harmful—for racial and ethnic minorities