In a startling find, a study from the RAND corporation found that higher deductables result in lower consumption of healthcare services.“Studying more than 800,000 families from across the United States, researchers found that when people shifted into health insurance plans with deductibles of at least $1,000 per person, their health spending dropped an average of 14 percent when compared to families in health plans with lower deductibles“
It is believed that this discovery is found to be consistent with other items in the economy such as houses and cars. Sources say that it appears that there are fewer people looking for very expensive houses over $10 million than those looking for houses under $200 thousand. Similarly, fewer cars over $200,000 are purchased relative to those costing $10,000.
What are we to make of this incredible observation?