Increasing Co-payments May Not Save Money!

We all know our co-payments for doctor visits have been increasing steadily over the last few years. Do these increases really save money for the insurance company? An analysis of 36 Medicare managed care plans with almost one million participants has revealed that even small increases in cost-sharing reduced the number of outpatient visits, but raised the number of inpatient admissions in an elderly population. The savings in outpatient visits amounted to $7150 per 100 enrollees, but the inpatient expenses increased by $24,000 per 100 enrollees. These findings suggest that copay increases may deter timely medical attention.

PositiveTip: If you need medical attention, delays could lead to poorer health and extra expenses.