High-deductible health insurance

The Associated Press/WASHINGTON
By KEVIN FREKING
Associated Press Writer

Health insurance policies that require consumers to pay for all their initial medical expenses are becoming a popular option as Americans try to cut down on their insurance costs.

The number of people purchasing high-deductible plans jumped from about 3 million in January 2005 to as much as 6 million by January 2006, the Government Accountability Office said Tuesday.

Individuals purchasing such policies usually pay lower monthly premiums because they agree to bear a greater share of the cost of their health care. The policies are often coupled with health savings accounts, which allow consumers to set aside money tax free, and they can then use that money to pay for medical expenses not picked up by the insurer or to save it for retirement.