Essentially, what it means is that if an employee spends less than $1.5k/yr on medical expenses, they don't gain much benefit. If they spend over $1.5k, they essentially only spend 10% after that on all of their medical expenses. And once they hit a hard cap at $3k, they spend nothing at all. 90% off for most medical stuff is a great rate.
Not even mentioning the fact that this kind of an insurance is a godsend to people with major health problems, given that in the worst possible scenario, they would only ever spend $3k of their own money in a calendar year on medical stuff. And that's only if their actual pre-insurance-cost expenses are closer to the $16.5k, because $1.5k + $1.5k/0.1 = $16.5k.
And I am yet to see a better insurance out of any employers (not just warehouse employers). Even the "amazing" student insurance I had back in college (which I had to pay the premium for) was much worse than this.
Nitpicking here, but they probably do, because the insurance-negotiated prices for many services are much better than the prices prices you could negotiate yourself -- and that is assuming you even have the skills and energy to do any negotiating.
I have a high-deductible plan, which on paper covers literally nothing until I hit something over $7k/yr in expenses, which I thankfully never have. However, I usually pay 30-60% less than the uninsured cash price for my appointments and procedures just because I'm on the plan in the first place.
I often (not always) check this with the provider, so it's not like I'm just blindly assuming the discount claimed by the insurance company is accurate. It's usually not, but the discount still seems to be substantial.
In exactly one case I ended up saving like 50 bucks per dermatologist appointment by paying them directly.
I'm 38 and also have a $7k+ deductible (my plan is HDHP), costs me $275/mo.
Currently it's something like "we charge you a lot for the first few months but also give you the money to pay it in your HSA", which makes you wonder why they give it to you in the first place. It's not like you can optimize your prescriptions out of your life, so it's not enabling choice.
Btw, once you're 65 you can withdraw money for no reason without a penalty, so it's no worse than a traditional IRA. Too bad deposits are taxed in California.
$3k for a Microsoft SWE is a "dang, I wish I didn't have to go to the hospital" situation.
$3k for an Amazon warehouse employee earning $15/hr can often be a "there go my savings, I wonder if I got this injury due to the amount of physical activity my job requires" situation.