Why Your Health Plan Can Be Dangerous

For years we’ve been told that “skin in the game” is the secret to fixing America’s health care. The theory is simple: If you have to pay a high deductible before your insurance kicks in, you’ll shop around for the best price on an MRI or think twice before hitting the emergency room for a hangnail.

It sounds reasonable in the boardroom, but in the real world, it turns out to be a disaster.

A recent study published in JAMA Network Open, the journal of the American Medical Association, suggests that for some people, these high-deductible health plans (HDHPs) are doing more than just draining bank accounts. They actually increase the risk of death.

A fatal flaw in high deductibles

The research focuses on cancer survivors, a group that requires consistent, high-quality follow-up care to stay alive. Researchers found that cancer survivors enrolled in HDHPs had a significantly higher risk of death compared to those in traditional, low-deductible plans.

Specifically, the data showed a 1.5-fold increased risk of overall mortality among these survivors. Why? Because if the bill is your responsibility, you start playing doctor with your life. Skip the tracking scan. You “wait and see” if that lump is something you should really worry about. You are delaying expensive professional visits.

For a healthy 25-year-old, a high deductible is a calculated gamble. For someone who has experienced a serious illness, it is a trap. If you’re having trouble with the math, you may have to ask yourself if you can afford your insurance.

It’s not just about cancer

While this particular study highlights the risk for cancer survivors, the dire consequences of the high deductible culture are everywhere. For the year 2026, the IRS defines a high-deductible plan as any plan with a deductible of at least $1,700 for an individual or $3,400 for a family. However, KFF reports that the rate of withdrawal of copper systems in the market is very high.

If you’re staring at a $7,000 building before your insurance pays a dime, you’re not a “price shop.” Some people, at least, simply stop going to the doctor. Research has shown that HDHPs don’t actually turn us into more informed consumers; they just turn on the evasive ones.

We skip preventive care that could have been a problem during a $200 repair, and end up in the ICU with a $50,000 disaster later. This is how many Americans end up in medical debt.

Calculations of “affordable” premiums

Employers like these plans because they lower the monthly payment. You may see more money in your paycheck, and that feels like a win. But you have to look at the total cost of ownership for your life.

If you have a chronic illness—diabetes, heart disease, or a history of cancer—an HDHP is often the most expensive choice you can make. The “savings” on your monthly premium can be wiped out with one trip to the professional. Before you sign up, make sure you know what budget-friendly health plans are available to you.

A way to protect yourself

If you are currently choosing an annual plan or are still on an HDHP, you need to be clinical about your approach.

• Import an HSA by limiting: If you must have an HDHP, you must use a Health Savings Account (HSA). In 2026, the contribution limits are $4,400 for individuals and $8,750 for families. This is pre-tax money that can pay off those dreaded bills.
• Never skip preventive maintenance: Many plans are required by law to cover certain preventive services—like mammograms or wellness screenings—at 100% even before you take out your deductible.
• Do the “Max Out” calculations: When comparing plans, don’t just look at what you pay. Add the annual payment to the Out-of-Pocket Maximum. That’s your “worst case” number.

The bottom line is that health insurance should be a safety net, not a barrier to staying alive. If your plan makes you afraid to call your doctor, it doesn’t actually provide you with “health” care. An HSA can be a great retirement savings tool, but only if you live long enough to use it.