Health Reimbursement Arrangements: Making a Good Deal Better

National Center for Policy Analysis BRIEF ANALYSIS - No. 438 Health Reimbursement Arrangements: Making a Good Deal Better by Devon Herrick The proportion of health care paid directly by consumers has been falling for decades. In 1960, individuals paid directly for 50 percent of their health care. Today they pay for only 15 percent. The other 85 percent is paid by third parties, generally employers, insurance companies or the government. [See the Figure.] As their share of health expenses declined, so also did consumers interest in controlling health care costs. For example, if patients pay only 15 cents out of each . . .