Insurance deductibles divert money from wealth building and hurt black savers more

Evidence

We know that medical expenses can create serious debt for the uninsured. But even a high-cost out-of-pocket insurance policy inhibits savings. For example, if you get sick, and your health insurance plan has a deductible of 5,000, meaning you pay the first 5,000 of your medical costs, that’s $5,000 you can’t save for wealth building. And given the racial wealth gap, black workers are less likely to be able to absorb the expense of paying these out-of-pocket expenses. — Dorothy A. Brown, The Whiteness of Wealth, 415