Which factor could lead to higher out-of-pocket payments in healthcare?

High deductible health plans are designed to have lower monthly premiums in exchange for higher out-of-pocket costs when healthcare services are utilized. These plans require individuals to pay a substantial deductible before the insurance begins to cover a portion of the healthcare expenses. As a result, the initial outlay for medical services falls entirely on the patient until the deductible is met, leading to greater out-of-pocket payments.

In contrast, comprehensive insurance plans typically cover a broader range of services with lower deductibles, which reduces the burden of out-of-pocket expenses for patients. Employer-provided coverage often includes benefits that mitigate costs through negotiated rates and shared premiums, making out-of-pocket expenses lower. Public financing options, like Medicare or Medicaid, usually limit out-of-pocket spending due to government subsidies, offering further protection against high costs. Therefore, it is the structure of high deductible health plans that distinctly contributes to higher out-of-pocket payments in healthcare.