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September 19, 2005
Health Savings Accounts cause lower health insurance inflation
Health insurance premiums increased by less than 10% for the first time in 5 years. This is according to the Annual Employer Health Benefits Survey from the Kaiser Family Foundation and the Health Research and Educational Trust, which polled nearly 3,000 firms with three or more workers. Could Health Savings Accounts (HSAs) be the reason?
Even though a 9.2% rate of growth is still three times the rate of inflation, it might be big news that the rate of growth is dropping. Some HSA proponents are even claiming that the rapid adoption of HSA plans may have something to do with the change.
HSA plans have high deductibles, and don't cover charges like routine doctor visits or prescription drugs until the deductible is met. Thus the premiums are much lower. Averaging those lower premiums in with all the standard plans out there, and it likely did make a difference. I have no idea how much.
Posted by Wiley Long at September 19, 2005 09:15 PM