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February 28, 2006
Blue Cross Blue Shield to administer health savings account plans, offer more services
Blue Cross Blue Shield customers who have a health savings account are likely to have one more choice next year in where they invest that money.
The Blue Cross and Blue Shield Association, the umbrella organization for Blue Cross insurers in various states, filed a request in January with the Federal Deposit Insurance Corp. to operate Blue Healthcare Bank. The insurer said that its bank could provide administrative and management services by early 2007.
"Developing this bank represents a key component of the Blues' leadership and our vision for a better health-care system," said Scott Serota, the association's president and chief executive.
The association is waiting for a response from the FDIC.
At stake is the $75 billion in assets expected to flow into health savings accounts by 2010, according to DiamondCluster International Inc., a management-consulting company. The company estimates that there could be up to 20 million health savings accounts by 2010, up from about 1 million in 2005.
DiamondCluster predicts that health savings accounts, which are supported by the Bush administration, could generate more than $1 billion in annual transaction fees by 2010, as well as $800 million in asset-management fees and $450 million in account set-up and management fees.
"Members have greater responsibility for handling their health-care needs, so anything we can do to make that process more efficient is a plus," Stinneford said, a Blue Cross spokesman.
To be eligible for a health savings account, a patient must first have access to a "high-deductible health plan," which typically covers major medical expenses, including surgery costs and hospital stays. By having higher deductibles, patients can reduce their premium costs for health insurance.
Under a health savings plan, an individual cannot contribute more than $2,750 a year into the account, and families cannot contribute more than $5,450.
The money in a health savings account can be invested in stocks, mutual funds, 401(k) plans and real estate, which is why the accounts must be handled by a financial institution. Consumers can be provided with a debit card, linked to their health savings account, to pay for HSA qualified expenses.
Marc Fusaro, an assistant economics professor at East Carolina University, said that Blue Cross Blue Shield likely does not want to operate a full-service bank.
"Instead of outsourcing the business, they have decided to do health savings accounts in house," Fusaro said. "But to do this service, taking deposits, they need to be registered as a bank."
Blue Cross is not alone in aiming at health savings accounts. United Healthcare Group created Exante Bank in 2002 to provide health related financial services.
Aamer Baig, a partner in DiamondCluster, said that banks might not mind healthcare insurers providing administrative services for health savings accounts.
"Many banks will be willing to forgo the administrative tasks of record keeping, safekeeping of funds and managing the enrollment process," Baig said. "The Blues could potentially do these activities well."
"But the higher revenue opportunities exist in asset management and transaction processing,"he added. "If the Blues' new bank is to house assets and facilitate payments, we expect banks to compete fiercely to hold on to their advantage there."
This move by Blue Cross and other health insurance companies will give health savings account owners more choices to administer their HSA. It will also spur competition with banks which should in turn bring down fees and create better services.
This is just another example of how things are getting better and better for health savings account owners. Visit us at www.health--savings--accounts.com for more HSA information.
Posted by Wiley Long at 08:17 AM | Comments (4)
February 27, 2006
Health Savings Account Solution for American Health Care
Health care costs continue to squeeze the budgets of American families, businesses and governments. It is beginning to jeopardize our way of life.
With health care costs making up more of the cost of building a car in the U.S. than the steel going into each vehicle, we need bold, creative leadership to ensure access to affordable health care for all Americans.
What got us here? Excess government regulations and burdensome liability practices make health care more expensive and less obtainable for millions of Americans, while a lack of consumer choice and market-based solutions prevent an out-of-control system from righting itself.
Market competition has driven down the cost of many other products and services, and the same free-market principles brought to bear on health care can give us the same result while halting a drift toward socialized medicine, with its rationing and price caps.
Socialized national health care isn't working in other countries, unless you or your family never get sick. Even emergency illness or injury treatment can be delayed as rationing determines when and who gets care.
Consumerism already works in America's health sector. Studies show that Health Savings Accounts lower costs while maintaining access to health care.
One study determined that HSA-eligible plans now cover at least 3 million individuals.
HSAs are particularly attractive to individuals and small businesses that previously lacked insurance.
After two years, 37 percent of individual policies were purchased by previously uninsured people and 27 percent of small employers offering HSA-eligible plans did not previously provide coverage.
Some say HSAs will be attractive only to the young and healthy. Not true!
Studies show 40 percent of Health Savings Account purchasers make less than $50,000 a year; a majority are families with children; about half are over age 40; nearly two-thirds paid $100 a month or less for their plans; and most cover 100 percent of the costs of hospitalization, lab tests, emergency room visits, prescription drugs, and doctor visits after the deductible is met.
Congress still has work to do. First, we must acknowledge this is not a Republican or a Democrat problem, it is an American problem. Partisanship does not get American families access to affordable health care.
We need market-driven alternatives to create a system that helps vulnerable populations receive care and build self-sufficiency. And, we must use new technologies to implement such cost-saving techniques as electronic medical records, electronic records transfer, debit card-type payment systems, and portable health care coverage.
America has the best health care in the world, but our health care delivery system is bogged down in government bureaucracy and red tape, wracked by lawsuit abuse, and unable to keep pace with technological advances.
Moving past these barriers will bring us to common sense solutions that are crucial for the future of all American families.
Posted by Wiley Long at 07:48 AM | Comments (0)
February 26, 2006
A Health Savings Account is like a health care 401k plan
Bush administration officials and some conservative thinkers hope that health savings accounts can change health care finance in a way similar to the way Section 401(k) changed pensions.
Sometimes a little-known law can reshape our economy and our personal lives. One such law was Section 401(k) of the 1978 tax law. The headlines that year went to the law's sharp reduction in capital gains taxation, which indeed had important effects, including sparking the venture capital sector that financed the high-tech revolution. But 401(k) had a similarly important effect...
Employees were allowed to contribute tax-free income to individual retirement accounts, and employers could match their contributions. At the time, most private pensions were defined-benefit plans -- the employer promised to pay certain amounts on retirement. Section 401(k), when implemented by regulations in the early 1980s, led to the proliferation of defined-contribution pensions.
Defined-benefit plans tied employees to their employers for long periods and left the value of their pensions subject to risk if the employer defaulted -- just ask retired steel company and airline workers. Defined-contribution plans allow employees to take their pension money with them when they change jobs and to manage their funds themselves.
The result: a more flexible, agile labor force and a citizenry less dependent on large institutions over which they had little control and more able to fend for themselves.
The Medicare/prescription drug law of 2003 contained provisions allowing health savings accounts -- one reason the Bush administration and most congressional Republicans supported it. Now the administration wants to strengthen HSAs by making premiums on these policies tax-deductible.
This is an attempt to reverse the effect of the World War II decision to make health insurance policies deductible to employers and tax-free to employees. This tended to tie health insurance to employment and has made individuals dependent on large organizations (sound familiar?). Since third parties pick up the tab for most health care spending, consumers tend not to be cost-conscious, and the result has been above-inflation cost increases for health care.
The Bush administration, like all before it, shies away from urging that health insurance premiums be taxable -- voters would hate that -- and instead is trying to level the field by making all premiums deductible. There's an argument that this is regressive, because the tax deduction is worth more to high-income taxpayers. But that's true of all tax deductions, and can be compensated for by giving lower-income people deductible tax credits.
Will health savings accounts be an entering wedge to produce a more market-oriented health care sector? Democrats fear that, and Republicans hope so. What is clear is that health savings account-type policies have been rapidly growing since passage of the 2003 act. There are now 3 million people with a health savings account, and big employers in increasing numbers are offering high-deductible policies. The employee gets to choose whether to pay more for more coverage or to pay less and be able to keep what he doesn't spend.
Of course, the health care sector will never be entirely market-oriented. Emergency patients on gurneys can't make cost-conscious decisions, and the poor will receive care that will in some way be subsidized by others. But health savings accounts have been spreading more rapidly since the 2003 Medicare act than defined-contribution pensions did after the 1978 tax act.
The New Deal and the World War II years produced policies that left people dependent on large organizations -- organizations that, we now learn when we contemplate the problems of steel pensioners or Social Security recipients, don't always deliver. Public policies like Section 401(k) and health savings accounts give more control to individuals and more flexibility to society.
The Clinton health care plan failed in part because we do not have one health care finance system, but many -- and it is impossible for even very smart people to design a one-size-fits-all model that will be politically acceptable. The Bush administration's push for health savings accounts is an attempt to change things not by government mandate, but by opening the way for the private sector to make decisions that will increase the power of market forces.
Posted by Wiley Long at 10:31 AM | Comments (0)
February 25, 2006
Treasury Chief Says Health Savings Accounts Are Working
The Bush administration continues to tout Health Savings Accounts as a means of reducing healthcare costs.
Last week, Treasury Secretary John Snow visited Associated Material Handling Industried (AMHI), which will be offering Health Savings Accounts as a health-coverage option to their employees beginning this summer.
"With the addition of a Health Savings Account to your health coverage options, AMHI is joining large and small employers across America who are choosing to offer this affordable option to their employees," Snow said.
"I think it's a great option to have because choosing an HSA over traditional insurance plans puts patients in charge of their health-care purchasing decisions. That's why the creation of HSAs was so important. It was historic, really, because it embraces a philosophy that favors the individual, versus an employer or the government."
President Bush has proposed an expansion of HSAs by making premium costs deductible from income and payroll taxes when purchased by individuals, raising the cap on the amount of money that can be saved in an HSA, and making the high-deductible insurance plan that accompanies an HSA fully portable.
"HSAs are a good product. They're working," Snow said. "Savvy employers are offering them to their employees, and they are opening up an affordable option to small employers that might not have been able to afford health insurance otherwise. I'm thrilled that the employees of AMHI are going to have the option of a medical savings plan soon, and I hope that in the near future all Americans have a chance to start HSAs that have all the tax benefits of traditional health insurance."
President Bush is also touting HSAs as he visits with employers across the country. Last week, Bush praised HSAs at Wendy's International headquarters in Dublin , Ohio .
HSAs are tax-exempt trusts or custodial accounts established exclusively to pay qualified medical expenses. To be eligible for HSAs, individuals must be covered by a high deductible health plan.
Critics say HSAs will make the healthcare system weaker because they will attract young and healthy workers and drive up the costs for others and alter the shared-risk dynamic.
Bush and Snow say HSAs are a more affordable option than traditional health plans.
"HSAs are a good product. They're working," Snow said. "Savvy employers are offering them to their employees, and they are opening up an affordable option to small employers that might not have been able to afford health insurance otherwise."
Posted by Wiley Long at 10:38 AM | Comments (0)
February 24, 2006
Federal Employees should switch to a Health Savings Account
The open season to choose a new health insurance plan is over for the year, and most federal employees chose not to switch to a Health Savings Account.
But advisers say if federal employees do a better job tracking their out-of-pocket spending over the course of this year, review previous years’ experiences and compare ppo plans with health savings account plans, they will come out ahead financially by switching to a health savings account.
Look at the coming months as a chance to arm yourself with the data necessary to make an informed choice next time. You might be surprised by what you find, said Jay Savan, health and welfare group leader for Towers Perrin in St. Louis, a human resources consulting firm.
For example, although it might not seem logical at first, one way for some to reduce expenses on health care might be to enroll in a high-deductible insurance plan with a health savings account.
High-deductible health plans were developed in part to encourage people to restrain spending, such as through fewer doctor visits. They also should encourage use of in-network providers, a major way of holding down out-of-pocket costs in most plans of all types.
Employees in 2006 had a choice of 21 such plans, including three available nationwide, through the Federal Employees Health Benefits Program. The Office of Personnel Management is seeking legislation that would allow its largest insurer — Blue Cross and Blue Shield — to offer such a plan.
The tax advantages of an HSA and the fact that the government contributes to it are the major reasons these types of plans appeal to many, said Savan. His company provides employee benefit services to public and private plans.
“Truly it’s free money,” he said. “It makes a lot of economic sense.”
A happy customer
Dave Conway, a GS-14 at the National Counterterrorism Center in McLean, Va., couldn’t agree more.
For the second year, Conway is in Aetna’s high-deductible health plan with a health savings account.
He pays less in premiums than he used to under a different type of plan, and the money in his account for paying medical expenses is pretax and earns interest. If the balance is at least $2,000, he can invest it in various funds, thereby earning gains but also subject to losses.
Conway based his decision to enroll in Aetna’s high-deductible plan with a health savings account on his family’s past spending patterns. Comparing plans, even with ups and downs in health care needs over the years, “I was coming out much better with the high-deductible plan, the bottom line was looking much better,” said Conway, who is married and has two children, 19 and 16.
“Even in a year with braces, I can handle that,” he said.
Conway does not have to meet a deductible for in-network preventive medical and dental care, which is free to him under the plan. For sick visits and other nonpreventive care, Aetna pays 90 percent for in-network providers and 70 percent for out-of-network providers, but only after Conway meets the $5,000 annual deductible for family coverage. Before meeting the deductible, he would pay for the whole office visit. He can use money from his health savings account to do that, but does not have to.
He also must pay the full cost of prescriptions until he meets his deductible, and he must use money from his account for pharmacy benefits. After the deductible is met, he would shell out a co-pay for prescription drugs.
Conway thinks he won’t likely need to pay the entire $5,000 deductible, but if he or a family member requires unexpected high-cost care, he doesn’t mind the risk that he will have to pay a relatively high amount initially, and then be covered by traditional co-insurance after that.
For family coverage, the out-of-pocket maximum per calendar year is $8,000 for in-network care and $10,000 for out-of-network care.
Besides, Conway knows he can switch coverage each year if he wants to.
Conway said he was attracted to the health savings account as an alternative to his tax-free flexible spending account, which required guessing how much money to deposit and left open the possibility of losing any unused money.
“I hate gambling,” Conway said. “I was annoyed by the whole concept that I had to gamble.” Flexible spending accounts are available to all federal employees, regardless of which type of health plan they choose. Employees decide how much in pretax dollars to deposit into flexible spending accounts. The money can then be spent on certain health care expenses.
But flexible spending accounts are different from health savings accounts, in that FSA money does not carry over into future years and does not accrue interest. With HSAs, the employee owns the money forever, even if he switches health plans or leaves government service. And even when the employee dies, money in the HSA would go to a beneficiary.
People cannot have both an HSA and an FSA.
Health savings accounts also are different from health reimbursement arrangements, or HRAs. HRAs are for people ineligible for HSAs, such as those who have Medicare. HRAs do not earn interest, and are forfeited if you leave federal service or switch plans.
Conway views his health savings account as similar to an individual retirement account.
“This is like an IRA for medical use except I don’t have to wait until I retire to use it,” he said. “I like the control, not having to guess about things. I can add money.”
As with other health plans, Conway’s agency automatically deducts his share of his premium from his paycheck, and sends it plus the government’s share to the insurance company. Aetna keeps a portion, and deposits a portion into his account — $250 a month or $3,000 a year for family coverage. The $3,000 exceeds what he pays in premiums by $768.
He can, but is not required to, contribute up to $2,000 more tax free into his health savings account — the difference between the $3,000 that Aetna will deposit for him and his $5,000 deductible. Additional contributions he makes are deductible on his federal taxes.
“I can spend this money on these bills instead of my hard-earned after-tax dollars,” Conway said.
He hopes not to have to deplete his account, but let it grow because he knows he will have higher medical costs someday.
A new way of thinking
HSA plans can benefit both people who have low and high claims, depending on the plan design, its alternatives, the premiums and personal circumstances, Savan said.
But they’re not for everyone. And some high-deductible plans are better than others, Savan said.Quality care and satisfaction with your plan are important too.
Savan said you should not always pay for health care with account money because “HSAs are the most powerful tax-protected accumulation vehicle in the Internal Revenue Code.”
You have to think about health care and insurance in a new way, as owning your house versus renting it, he said. When you own, you build up equity and have control.
Retirees generally are not enrolling in federal high-deductible plans, according to a January Government Accountability Office report, “FEHBP, First-Year Experience with High-Deductible Health Plans and Health Savings Accounts.” In 2005, only 11 percent of enrollees in high-deductible plans were retirees, compared with 45 percent in all of FEHBP, GAO said.
The average age of those in high-deductible plans is 46, compared with 59 for all of FEHBP.
That is what critics are afraid of. As high-deductible plans attract younger, relatively more healthy customers, critics say fee-for-service plans will lose customers and be forced to raise rates or go out of business because of higher costs associated with older enrollees.
OPM said in its response to the GAO report that it would monitor “the possibility of risk selection occurring over time by enticing the young and healthy into [high-deductible health] plans at the expense of our traditional insurance plans.”
Posted by Wiley Long at 11:21 AM | Comments (0)
February 23, 2006
Setting The Record Straight On The Benefits Of Health Savings Accounts
Sebastian Mallaby of the Washington Post claims that Health Savings Accounts are only for "Rich People" and "Healthy People." "The administration is proposing a new kind of 401(k), and using it as an inducement to quit low-deductible insurance. Rich people, who gain most from the tax breaks on health savings accounts, will be first to sign on; healthy people, who subsidize sicker people in company health plans, will be right behind them." Mr. Mallaby obviously hasn't done his research.
Studies have shown Health Savings Accounts have broad appeal, and not just with the Rich and Healthy.
- Enrollment In HSAs Has Tripled Since March 2005. "At least three million consumers currently receive health coverage through high-deductible health insurance plans offered in conjunction with health saving accounts (HSAs), according to preliminary results of a new study by America’s Health Insurance Plans (AHIP). According to the study, enrollment in the new insurance policies eligible for HSAs has roughly tripled since last March when a similar AHIP survey found that 1,031,000 people were covered by HSA-compatible insurance policies." (America's Health Insurance Plans, "HSAs Triple in 10 Months," Press Release, 1/26/06)
- Studies Show That Low-Income And Previously Uninsured Americans Are Signing Up For HSAs. "These lower-premium plans are an important option, especially for those who might not otherwise be able to afford coverage, Ignagni said, noting that among the companies tracking the information, previously uninsured people purchased 37% of the individual policies. Twenty-seven percent of the policies in the small group market have been sold to employers who did not previously offer coverage to their employees. Shattering the myth that these new products only attract young and healthy individuals, the census indicates that nearly half of people covered by HSA-eligible insurance are over the age of 40." (America's Health Insurance Plans, "HSAs More Than Double In Six Months, New AHIP Study Shows," Press Release, 5/4/05)
- Survey Finds More Previously Uninsured Americans Enrolled In HSA Programs Than Traditional Health Plans. "The survey found that HSA-eligible enrollees are of all ages and of no different health status than people enrolled in traditional coverage. 'This survey finding dispels the myth that HSAs are only for the young and healthy,' said Sullivan. 'In addition, we are also bolstered by the finding that the number of previously uninsured currently enrolled in a HSA-eligible product is double that of enrollees in traditional insurance products (12 percent to 6 percent).'" (Blue Cross And Blue Shield, "BCBSA Consumer Survey Shows High Rate Of Satisfaction With HSAs," Press Release, 9/28/05)
- Nearly Half Of HSA Enrollees Are At Least 40 Years Old. "Other key findings of the report on HSA-eligible health plan purchasers include: Nearly half are at least 40 years old; More than one-third are families with children; 40 percent have incomes under $50,000 a year; One-third were previously uninsured; and Of those in the $15,000 to $35,000 income bracket, there was a 161 percent increase of previously uninsured purchasers during all of 2004 compared to the first six months of the year." (eHealthInsurance, "Prescription Drug Benefits Included In 99.4% Of HSA Health Plans," Press Release, 2/15/05)
- The President Proposes Extra Financial Help For The Poor And The Sick. "A family of four making $25,000 or less will be able to get a refundable tax credit of $3,000 from the Federal government to help buy an HSA-compatible policy that covers them for major medical expenses. These families will have the flexibility to put up to $1,000 of the money directly into a Health Savings Account to pay for routine medical expenses. What the family does not spend can be saved in the account and carried over to the next year, earning interest tax-free." (The White House, "State Of The Union: Affordable And Accessible Health Care," Press Release, 1/31/06)
- The President's Budget Proposes Allowing Employers To Contribute More To The HSAs Of Chronically-Ill Employees Or Their Dependents. "The 2007 Budget proposes to change 'comparability' rules to allow employers to contribute additional amounts to the HSAs of chronically-ill employees or their dependents." (Office Of Management And Budget, "Health," Press Release, 2/6/06)
Mallaby claims HSA High-Deductible Health Insurance Plans do not provide comprehensive care. "In practice, probably less than half of all health spending outside Medicaid and Medicare would be affected by the new consumer-driven discipline. Many hospital stays cost more than any deductible, so consumers would have no incentive to bargain; emergency-room patients aren't in a fit state to negotiate prices with their doctors." (Sebastian Mallaby, Op-Ed, "Ownership Society Redux," The Washington Post, 2/13/06)
But Studies Have Shown That HSAs Provide Comprehensive Care At Lower Premiums.
- HSA Plans Provide Comprehensive Care At Reasonable Prices. "Premiums for health insurance plans sold to individuals and families as part of a Health Savings Account (HSA) program dropped an average of $29 per month." (eHealthInsurance, "Consumers Paying An Average Of $348 Less This Year For HSA-Eligible Health Insurance Plans Compared To 2004," Press Release, 7/27/05)
- HSA Plans Include Coverage For Prescription Drugs, Hospitalization, And Visits To The Doctor's Office. "In 2005, HSA-eligible health insurance plans continue to provide many of the benefits expected in comprehensive health insurance plans. For example, nearly 80% of the plans purchased had prescription drug coverage and more than 80% of the HSA-eligible plans purchased had comprehensive OB/GYN coverage at no cost to the plan holder. Also, all of the plans include emergency room, hospitalization and lab/X-ray services." (eHealthInsurance, "Consumers Paying An Average Of $348 Less This Year For HSA-Eligible Health Insurance Plans Compared To 2004," Press Release, 7/27/05)
- Many HSA Plans Will Provide Plenty Of Reason To Find Bargains On Health Care. Many HSA plans do not pay 100 percent after the deductible is met, charging typically 20 percent coinsurance until an out-of-pocket maximum is met. This definitely keeps the consumer engaged until their maximum is met. For example, under the Federal employees plans, one family plan has a $5,000 deductible but an $8,000 out-of-pocket maximum. This means the family is paying something on the first $20,000 of their care. The President’s new proposals would help families pay for these expenses through their HSA. (FEHB handbook, available online http://www.opm.gov/insure/handbook/fehb00.asp)
Mallaby says Americans would be better off in traditional corporate health plans. "And health savings accounts pose a more formidable threat to traditional corporate health plans than personal accounts posed to Social Security. Market forces are already dislodging company health plans; an extra shove could cause an avalanche." (Sebastian Mallaby, Op-Ed, "Ownership Society Redux," The Washington Post, 2/13/06)
But Studies Provide No Evidence That Employers Are Dropping Coverage.
- HSAs Make Coverage More Affordable For Business. "The cost of health plans that encourage members to be better health care consumers grew at a significantly slower rate in 2005 than other types of plans, U.S. employers reported in a survey released today by the Deloitte Center for Health Solutions. The cost of consumer-driven health plans – such as health savings accounts or health reimbursement arrangements – increased by an average of 2.8 percent from 2004 to 2005, according to the survey of 152 major U.S. employers. That compares to an 8 percent increase in total premiums for health maintenance organizations, an 8.5 percent increase for point-of-service plans and a 7.2 percent increase for preferred provider organizations. Traditional or indemnity plan costs increased 6.4 percent last year, according to the survey. The average for all types of plans was 7.3 percent." (Deloitte Services LP, "Survey: Consumer-Driven Health Plan Cost Growth Significantly Slower Than Other Plans," Press Release, 1/24/06)
- HSAs Are Part Of A Health Care System In Which Patients Are In Control. THE PRESIDENT: "An interesting product available is called health savings accounts. I strongly urge small business owner[s] here to look at them. It's an innovative product that enables the small business owner and the employee to combine, to work together to come up with a plan where the employee owns it. It provides for a high deductible catastrophic plan, coupled with tax-free contributions in the plan, basically gives the consumer control over his or her medical decisions. The plan can grow tax-free, which is an encouragement for people to make wise decisions about how they treat their body. If you have a catastrophic event, the insurance kicks in and covers it. It's portable. If you change jobs, you can take it with you. It's an interesting idea. It certainly stands in stark contrast with a system in which the federal government gets to make the consumers decisions, or tells the providers what they can charge. It's the opposite of federal control. It is patient control." (President Bush, Remarks On Small Business, Sterling, VA, 1/19/06)
Posted by Wiley Long at 08:42 AM | Comments (0)
February 22, 2006
Health Savings Accounts are the future of healthcare
Some experts believe it's unlikely consumer-driven health plans - such as health savings accounts - will dramatically shrink the nation's health care bill.
But the ideas health savings accounts are founded on could foretell the future of American health care and its cost.
In short: Educate people on price and quality, force them to share the expense, and they will spend health care dollars more wisely.
Nearly everyone with health coverage has been asked to pay a bigger portion of its cost in recent years. But the upside for consumers - such as giving patients access to wellness programs or the ability to compare cost and quality - has struggled to gain traction.
Consumer-driven health plans, including health savings accounts, should make those resources available to all patients.
Patients use health care as if there is no price attached to it, said Gautam Gowrisankaran, an assistant professor of economics at Washington University. He is researching how people behave after they've signed up for consumer-driven health plans.
"We're going to have to come up with some ways of rationing, either government rationing or rationing by price," Gowrisankaran said.
Health savings accounts, for example, allow employers and employees to save pre-tax money for medical expenses. The money can accumulate interest and later be withdrawn tax-free. The funds can roll over and stay with employees who change jobs or become unemployed.
But contributing to health savings accounts requires individuals to be enrolled in high-deductible health insurance plans. Family coverage has a minimum deductible of $2,100 and an out-of-pocket maximum of $10,500.
Premiums typically are lower with higher-deductible health insurance plans and research shows employers tend to pay a slightly higher percentage of that premium than a traditional health care plan. But under health savings accounts, employees can end up paying more out-of-pocket expenses.
Employers contributed, on average, $1,185 to each of their workers' health savings accounts, according to a 2005 study by the Kaiser Family Foundation, a nonprofit group in Washington. Combine that money with the average amount workers saved on premiums and there's still a $1,800 gap that workers would be responsible to pay before meeting the average family deductible of $4,070, Kaiser found.
If workers spend less than their employer's contribution, they get to keep it and spend it on future health care.
But none of the theoretical cost savings puts a value on people's time, said Gary Claxton, vice president at Kaiser.
"When you've got three kids and someone's sick, your first thought is probably not to get online and find out which doctor's a little bit cheaper," Claxton said.
And Kaiser found one-third of employers didn't make any contribution to their employees' accounts. Those workers were responsible to pay for any care before the deductible was met.
Critics of health savings accounts say they could create two factions of consumers. One group would be healthy and wealthy, receive large tax-free contributions from their employers and free preventive care. The other group would be poor and sick. They would pay more for traditional coverage because of the concentrated risk or weigh down the public health safety net.
"Behind all this discussion, I think that's the huge worry," said Edward Lawlor, a professor of social work at Washington University.
About 46 percent of people with consumer-driven health plans said they probably would stay in the plans even if they could switch. That compared to 60 percent of people in traditional plans, the Commonwealth Foundation, a Washington think tank, found.
UnitedHealthcare Corp., an insurer with offices in Maryland Heights, moved all of its employees to consumer-driven health plans. It's the largest provider of the those plans in the nation and recently introduced more offerings to area small businesses.
For UnitedHealthcare's employees, the company's contributions partly are determined by salary. Chief Executive Steve Walli said employee reaction was mixed.
"A lot of people don't like it when you take away their co-pays," Walli said.
Nationwide, most enrollees say they'd be more satisfied with the plans if they had better information on cost and quality. Experts say such information is critical to making consumer-driven health care work. Physicians and hospitals, however, have resisted, saying it's difficult to compare patient outcomes. And insurers have held back on releasing how much they pay for prescriptions and services.
UnitedHealthcare introduced a product last year that rated doctors on quality and steered members to those physicians. Immediately, several area hospitals attacked the methodology.
The insurer responded by creating a local physician steering committee that meets regularly to determine how to measure physician quality fairly and accurately. Walli said he would prefer to use metrics created by other organizations like national physicians groups, but there are too few of them to create a complete picture.
Walli and others say even more long-term cost savings could come from better disease prevention and management programs. Employees at UnitedHealthcare are given incentives to sign up.
Posted by Wiley Long at 10:25 AM | Comments (0)
February 20, 2006
Health Savings Accounts Offer Bright Future for Employers
Consumer-driven health care is the future of health care, and Health Savings Accounts offer a great alternative for employers. Business owners need to explore health insurance options with their employees as they work to improve their bottom line.
With health insurance costs going nowhere but up, insurance is no longer just expensive but its often unaffordable for employers. The problem is that consumer choice and the pressure it brings to the market have been removed from the equation.
Employers typically pay the majority of health care costs and in doing so limit their employees' options. It's a formula that has driven costs up. Only after consumers are given a choice will the quality of care improve and costs fall.
Get your employees involved, because until you do they lose the power to change the system.
Take Lasik surgery for example, an operation not covered by most insurance companies. In 1990, it cost approximately $3,000 for the procedure. That price has fallen to about $500 today because consumer demand drove the cost down.
In giving employees more choices and responsibility, health savings accounts will help drive down costs.
Health Savings Accounts will require employees to pay more out of pocket, which means employers will have to work to change their employees' mind set when it comes to health care plans. Rather than shifting from a traditional plan with small co-pays and low or no deductibles immediately, employers should move in that direction in small steps.
Develop a plan to progressively get there.
It will reduce employees' resistance, which employers should expect. Employers will need to persevere. Don't be deterred by your employees' screaming. Get them accustomed to taking money out of their pocket.
Business owners need to choose carefully, so they should consult employees as they move to give them more responsibility and help them move in the right direction. That can be accomplished by phasing in higher deductibles and higher cost plans. If the goal is to put a plan in place with a $1,500 deductible, a company could implement the plan over a number of years in $250 increments. Doing so gives employees a chance to adjust to the move.
In addition, employers should put saving programs in place to help employees cover the extra expense. That's where Health Savings Accounts come into play. They allow employees to contribute to health care costs at regular intervals and provide tax benefits.
Right now, they're spending your money. But how would they spend the money if they had the checkbook?
Posted by Wiley Long at 11:48 AM | Comments (0)
February 17, 2006
Iowa State Senate proposes more tax help for Health Savings Accounts
Republicans in the state senate want taxpayers to help foot the bill for Iowans who open Health Savings Accounts and rack up big doctor bills. Senator Ron Wieck, a Republican from Sioux City who is an insurance agent, believes one reason Iowans aren't opening Health Savings Accounts is because they worry how they'd cover a big deductible before they've deposited enough money in their health savings account.
Wieck proposes that Iowa taxpayers loan up to 10-million dollars a year to Iowans who start up a Health Savings Account and then don't yet have enough money to cover a big medical expense. Wieck says the Iowan would have up to 12 months to repay the loan to the state.
Wieck says higher deductibles are a wave of the future, and will hopefully cause people to think twice before racking up unnecessary medical expenses. "We all need to adjust our thinking on our insurance," Wieck says. As Iowans face ever-higher deductibles in order to get affordable health insurance, Wieck says it makes sense to encourage Iowans to open Health Savings Accounts that can be used to cover those deductibles.
Wieck says banks and insurance companies will probably "work harder" to educate Iowans about Health Savings Accounts if the State of Iowa sets up the revolving loan fund to help pay medical costs in the first months a person has a Health Savings Account with just a small balance.
Posted by Wiley Long at 10:38 AM | Comments (0)
February 16, 2006
HSA for America partners with nation's CPAs on Health Savings Accounts
HSA for America announced a new initiative to help CPAs share the benefits of health savings accounts with their clients.
"As more Americans become aware of the lower premiums and tax savings that Health Savings Accounts offer, more will be coming to their CPAs with questions about these plans", says Wiley Long, President of HSA for America.
"People look to their CPAs to show them how to save on taxes. Yet most CPAs are not health insurance agents, and may not be that familiar with these plans."
Partner CPAs receive a special 31-page report covering all the details on how HSAs work, including innovative strategies to lower costs and maximize tax benefits. They will also have access to instant quotes on insurance plans that are qualified to work with HSAs, a comprehensive list of HSA administrators where their clients can establish their Health Savings Account, and an HSA hotline where they can get their questions answered. HSA for America will also be establishing an online database where consumer can locate an accountant in their area who is knowledgeable about HSAs.
The rapid adoption of HSA plans has been spurred by two financial incentives: lower health insurance premiums, and lower income taxes. Because they have higher deductibles, HSA-qualified plans are typically 30% to 40% less expensive than traditional plans. HSA holders may also deposit up to $5,450 into their account each year, taking a full tax deduction on the deposit.
These accounts have proven to be a popular health insurance option: according to a recent survey conducted by America's Health Insurance Plans (AHIP), which represents 1,300 insurers and health plans across the United States, more than three million individuals are now enrolled in a health savings account.
"Accountants are in a perfect position to educate their clients about the tremendous benefits that HSA plans offer", says Long, "The interest in these plans is exploding. We're look forward to continuing to build mutually beneficial relationships with those in the accounting community."
To get your free report, plesae visit HSA for America's CPAs - Accountants - Financial Advisors page.
Posted by Wiley Long at 10:45 AM | Comments (0)
February 15, 2006
ColoHealth Reports Rapid Increase in Health Savings Account Sales
Online health insurance retailer ColoHealth reports a 50% increase in sales of insurance plans that qualify to work with Health Savings Accounts.
ColoHealth, which markets individual and family health insurance plans in the state of Colorado, reported that 32% of its 2005 sales were for Health Savings Account qualified plans, compared to just 21% in 2004.
During the last three months of the year, 39% of its sales were HSA plans.
Fred Adams, Vice President of ColoHealth, said the company is expecting over half its business to be HSA-qualified plans in 2006. "The premiums for HSA plans are typically about 30% lower than for traditional plans. When you combine the tax savings with the lower premium, it is not unusual to cut your costs by 50% or more."
HSA-qualified plans carry a deductible of $1,050 or more, so the policy holder is responsible for paying for doctor visits and prescription drugs until the deductible is met. "People are realizing that they should look at their health insurance the way they look at car insurance - use it to cover the major expenses, not the routine oil changes", said Adams.
Using a Health Savings Account to pay non-covered medical expenses
Funds from a health savings account can be withdrawn tax-free to pay for virtually any medical expense not covered by the health insurance policy. This could include dental expenses, eye glasses, household medical expenses like aspirin, and even charges for alternative treatments like acupuncture or homeopathy.
Because the funds in a health savings account grow tax-deferred like an IRA, yet are not taxed if withdrawn to cover medical expenses, most financial experts are recommending that HSA-holders fund their health savings account before funding any other retirement vehicle.
Federal law allows health savings account funds to pay for Medicare premiums, long-term care insurance, or even nursing home care.
Posted by Wiley Long at 08:13 AM | Comments (0)
February 13, 2006
Without Health Savings Accounts, we're Dead Meat
Ever since the State of the Union Address, there has been a lot of negative press on Health Savings Accounts. It seems there is a full on attack on Health Savings Accounts accusing them of being for the rich, just another tax shelter, a cancer to the healthcare system. Nothing could be further from the truth. These are the same people who think your government should be in control of your healthcare. They want to give you free healthcare, but at a cost. What's the cost? They tell you when, where, and how you will get treatment. They (the government) are in total control of YOUR body.
So what would this system be like? All we have to do is look to the North to find out. Canada already has this type of healthcare system in place. The reality of health care under Canada's socialized medical system: Canadians wait ... and wait ... and wait. ... And sometimes they die while waiting for free government health care.
To see a short film on Canada's healthcare system, I urge you to visit: http://www.onthefencefilms.com/video/deadmeat/
The film is called Dead Meat. It's a 25 minute short film which shows the reality of health care under Canada's socialized medical system.
The U.S. health care system is in need of reform, however, the solution proposed by those opposed to Health Savings Accounts is a total government takeover of medicine inspired by the Canadian government-run health care system. Since most Americans know very little about medicine as practiced by our northern neighbor, this film is a warning to look before you leap. Many Americans would be surprised to know that Canada (like Cuba and North Korea) makes it illegal to purchase private healthcare for yourself or a loved one - and that the adoption of a so-called "single-payer" system would represent a major restriction of the freedoms that Americans now enjoy.
Canada does spends less on health care than the U.S. However, costs are controlled by arbitrarily limiting the number and availability of doctors, specialists, operating room hours, high-tech equipment, diagnostic tests, drugs and expensive treatments. In short, the government limits the supply of health care in order to hold costs down. The result: shortages, rationing, and long wait lists.
Many Canadians who have never been really sick are supportive of their system. In fact, the system caters to the healthy majority with free primary care doctor appointments, flu shots, etc. while depriving the truly sick - often the elderly - of timely medical treatment that is often more expensive. Political expediency dictates that health care dollars are spent where the votes are: the healthy majority - while across Canada, hundreds of thousands of sick and disabled people quietly languish in pain in their homes on long waiting lists for treatment while being told that to question the moral supremacy of their health care system is somehow "Un-Canadian".
Is this really the type of system we want restricting us here in the United States? Not me! I believe Health Savings Accounts are the answer. Put people in charge of their own health and healthcare dollars. Let the people decide what's best for them... not our government.
Posted by Wiley Long at 09:18 AM | Comments (0)
February 10, 2006
Health Savings Accounts need focus on Price and Quality
Like President Bush, Harvard Business School professor Michael Porter believes that competition created by health savings accounts can solve much of what ails the U.S. healthcare industry. However, Porter also believes one major problem people with a health savings account face is a lack of good information on quality and outcomes. And without that information health savings accounts will have an uphill battle.
According to Porter:
- People who use the president's favored Health Savings Accounts might try to save money by avoiding cost-effective drugs or preventive treatments, while spending money on costly but ineffective procedures. Educating individuals and families with a health savings account is very important.
- Much of the effort to drive up value needs to happen in the private sector; healthcare providers, insurers, and employers on have to do their part to make the system work.
- Government should take the lead in measuring healthcare quality and outcomes; the government can establish standards for good, risk-adjusted measurements, and then require providers to report them.
For President Bush, there's an opportunity in this. The health-care system seems ripe, not for a grand fix, but for a governmental push in the right direction.
If competition is going to rescue the U.S. health-care system, it will have to be competition on price and quality.
Posted by Wiley Long at 10:52 AM | Comments (0)
February 09, 2006
President Bush Calls for Price Transparency
Yesterday, President Bush spoke in New Hampshire about his 2007 Budget proposal. Here is a portion of the discussing he had on Price Transparency which will benefit all Health Savings Account owners:
"I've talked about health care and the importance for us to have a health care system that takes care of the elderly and the poor, but a health care system that strengthens the relationship between doctor and patient; a health care system that provides transparency into pricing; a health care system that uses information technology to bring the medical profession into the 21st century.
You know, some are going to say, what do you mean by that? Well, I mean, when you're writing your files by hand, it means you're not in the 21st century. And since most doctors can't write too well, there's a lot of information that didn't pass.
I've talked, as well, about the need to get legal reform in the medical industry. Look, we've got too many lawsuits, pure and simple. We've got a real problem in the country because docs and hospitals are getting sued. A lot of good docs are being driven out of business. I said an appalling -- a statistic that I think is appalling in my State of the Union. Do you realize there are 1,500 counties in America without an OB/GYN? And that's wrong. And one of the reasons that's happening is because there's too many lawsuits driving good docs out of practice. We need a medical liability system that is fair to medical providers in the United States of America.
When I first went to Washington, I thought it might be a state issue. And then I realized that all these lawsuits are causing doctors to practice defensive medicine, as well as running up premiums, which costs the federal government a lot of money. And so I've decided this is a national issue that requires a national response. And the United States Senate needs to be pass medical liability reform this year.
Part of our plan for a patient-doctor system, one that gives you choices to make and counts on you for making rational choices, is to expand health savings accounts, and make sure that individuals and small business employees can buy insurance with the same tax advantages that people working for big businesses now get. And we're going to make sure those health savings accounts are portable. One of the things about our economy, which is interesting, is that there's a lot of turnover when it comes to jobs. People are changing jobs a lot, which creates uncertainty. And one way to deal with that uncertainty, to bring certainty to people in the workforce, is to make sure they can carry their health savings account with them from job to job, so they don't fear losing their health insurance.
So I've got a lot of ideas on health care that I'm going to be talking to the nation about in the coming weeks."
We are very encouraged with the path to health care reform the president is taking. With help from Congress, health savings accounts can be a viable options for anyone. We urge you to write your congressman to support the presidents initiatives.
Posted by Wiley Long at 09:37 AM | Comments (1)
February 08, 2006
Bush's Health Savings Account Push
In President Bush's state of the union, he mentioned the importance of Health Savings Accounts in solving some of the nation's healthcare problems, but he didn't take the time to get into his health savings account details. Here are his five proposals:
1. Give Individuals That Purchase HSAs On Their Own The Same Tax Advantages As Those With Employer-Sponsored Insurance. Currently, companies that purchase group coverage for their employee's are allowed to write off that expense on their taxes. But individuals are not. The President proposes making premiums for HSA-compatible insurance policies deductible from income taxes when purchased by individuals outside of work. In addition, an income tax credit would offset payroll taxes paid on premiums paid for their Health Savings Account insurance policies.
2. Eliminate All Taxes On Out-Of-Pocket Spending Through HSAs. This would allow people with HSA plans to make contributions to their account to cover all out of pocket expenses, not just their deductible. This proposal would in effect raise the contribution limit.
3. Enable Portable HSA Insurance Policies. This would enable employers to offer their employees a portable HSA insurance policy. Currently, the only way to do that is for the employees to have individual coverage instead of a group plan. Portability would allow someone to change jobs without worrying about losing their health insurance.
4. Extend The Benefits Of HSAs To Low-Income Families And Individuals Through Refundable Tax Credits. A family of four making $25,000 or less would be able to get a refundable tax credit of $3,000 from the Federal government to help buy an HSA-compatible policy that covers them for major medical expenses.
5. Allow Employers To Make Higher Contributions To The HSAs Of Chronically Ill Employees. Under current law, employers must contribute the same amount to each employee's HSA. This proposal would help chronically ill people pay for their expenses with pre-tax dollars.
These suggestions, though modest, would continue to push consumer-driven healthcare into the mainstream. The key ingredient then to really making it all happen is price transparency. We will cover price transparency in greater detail in future posts.
Posted by Wiley Long at 09:42 AM | Comments (0)
February 06, 2006
Changes to accelerate Health Savings Account growth
As President Bush moves to encourage growth in health savings accounts, more consumers may soon have to decide whether a Health Savings Account is the right option.
Mr. Bush is seeking a number of changes -- outlined in his State of the Union address last week -- meant to make Health Savings Accounts more appealing. Among them:
- Significantly increasing the amount of money people can deposit in their accounts each year.
- Offer tax incentives to people who get an HSA on their own, rather than through employee benefits.
If these changes, which are expected to be part of his budget proposal next week, are enacted, they have the potential to accelerate HSA growth.
HSAs, tax-advantaged savings accounts meant to help consumers pay for health care, were greeted with some skepticism when they were introduced in 2003. The accounts are the centerpiece of a movement to give consumers more of a stake in health-care spending. The hope is that people will make wiser, price-conscious choices.
Critics contend that HSAs will lead consumers to forgo necessary medical care, because they are paired with high-deductible insurance that requires people to pay more for care out of pocket. These critics contend people aren't smart enough to make their own decision on their healthcare. They feel the government is better suited to make those kinds of decisions for you. I would rather make my own decisions.
Employers are increasingly offering their employees HSA-qualified health insurance -- and the opportunity to open an HSA account. Overall, 8% of companies with 10,000-19,999 workers provided HSA benefits in 2005, compared with 1% in 2004, according to Mercer Health & Benefits, a unit of Mercer Human Resource Consulting.
About three million people have the high-deductible insurance that qualifies them to open an HSA, up from about one million last March, according to America's Health Insurance Plans, an insurance trade group. It's unclear how many people have actually opened the HSAs meant to go with these policies, but it is recommended that you set up your HSA as soon as you get your health savings plan. The sooner you set up your HSA, the more you will be able to save in taxes.
Please visit our HSA Questions & Answers page for some common questions and things to keep in mind if you are considering an HSA.
Posted by Wiley Long at 09:49 AM | Comments (0)
February 03, 2006
Take charge of Obesity with a Health Savings Account
One of the key aspects to a Health Savings Account is putting the consumer in charge. Not only thier hard earned money, but also their overall health.
America's problem with bulging waistlines has reached pandemic proportions, according to federal health officials, who warn that obesity is becoming society's No. 1 killer.
As doctors wrestle with the problem, economists have been pondering which corporations and industries benefit, and the role that changes in the overall economy have played in making us fat to begin with.
It turns out, economists say, that changes in food technology (producing tasty, easy-to-cook food, such as french fries) and changes in labor (we use to be paid to exercise at work, now we pay to exercise after work) combined with women's importance in the workforce, not the kitchen, have combined to produce industries able to cheaply and efficiently meet the demands of our busy lives.
For many corporations, and even for physicians, Americans' obesity has also fattened the bottom line:
- William L. Weis, a management professor at Seattle University, says revenue from the "obesity industries" will likely top $315 billion this year, and perhaps far more.
- That includes $133.7 billion for fast-food restaurants, $124.7 billion for medical treatments related to obesity, and $1.8 billion just for diet books -- all told, nearly 3 percent of the overall U.S. economy.
"Put simply, there is a lot of money being made, and to be made, in feeding both oversized stomachs and feeding those enterprises selling fixes for oversized stomachs," Weis wrote in 2005 in the Academy of Health Care Management Journal. "And both industries -- those selling junk food and those selling fat cures -- depend for their future on a prevalence of obesity."
These are sad sad facts. There are a lot of societal presures working against you in the battle of the bulg. Encouraging individuals to sign up for a health savings account could help put a dent in American's waistlines.
When individuals are put in charge of their own health care dollars, staying in shape and living a healthy lifestyle will be a major goal for HSA owners because it will save them money. More money... one of the greatest motivational factors in our society. Now put down those fries and start saving money!
Visit us at www.health--savings--accounts.com to get started.
Posted by Wiley Long at 11:02 AM | Comments (0)
February 02, 2006
Michigan School District switches to Health Savings Account plan
Whitehall District Schools in Michigan has taken a major step to get its health insurance costs under control and stabilize the budget for the next three years.
The board of education approved a switch in health insurance plans for the district’s administrative staff to a Health Savings Account. Administrators will no longer be covered by MESSA but will have health insurance through a high deductible health insurance plan.
“Many districts will look at this option next year,” Christine Annese, assistant superintendent for Whitehall District Schools, said.
According to a news release, the new HSA plans will save the district nearly 22% in insurance costs. The savings from the change will allow the board of education to provide three percent salary increases to administrators each year for the next three years without increasing the amount that would be budgeted for administrators’ salaries and health insurance.
Annese said the district projected it would have spent $882,000 for administrators’ health insurance over the next three years under MESSA, but will now only spend $660,000 with the health savings accounts.
Whitehall District Schools said it will be the first public school district in Muskegon County to implement this type of health insurance policy similar to what the business community has used to reduce health insurance costs.
To offset the high deductibles, the administrators will have health care savings accounts which provide pre-tax dollars for out of pocket health care costs. Those dollars, if unused, can roll into the following year and continue until retirement.
Annese said the health savings accounts may provide additional funds for the administrators after retirement. “We hope administrators will see this as a chance to save for health care costs at retirement,” she said.
The release said the district will be able to hold the cost of administration salaries and health insurance through 2008 simply by moving health insurance cost savings into salary. The goal of the plan switch was to find a creative way to provide the security of good health insurance and still offer reasonable salary increases.
Annese said the administrators have met several times to listen to alternative health insurance plan presentations. After listening to all the plan presentations, they decided on health savings accounts as their best option to cut costs, provide proper health coverage, give their employees an opportunity to save for retirement, and promote a more healthy style of living.
Posted by Wiley Long at 09:20 AM | Comments (0)
February 01, 2006
Bush touts Health Savings Accounts as the future of Healthcare
In his State of the Union address, President Bush talked about Health Savings Accounts and his priorities for confronting the rising cost of health care. He is looking to help people afford the health insurance they need, and make the coverage portable so people don't lose their health plan when they change jobs. Health Savings Accounts, which now cover over 3 million people, are already lowering people's costs, in many cases are totally portable, and provide powerful incentives that will reduce healthcare costs for all.
For the past 60 years, most health care has been paid for and controlled by third parties such as the government, insurers, and employers. Consumers rarely compared prices or quality of service when shopping for health care – partly because this comparison was usually very difficult or even impossible, and partly because the price often just didn't matter to the consumer, who was only responsible for a moderate co-payment.
Today people are waking up to the idea that they should look at their health insurance the way they look at their automobile insurance or homeowners insurance. The coverage is to pay for the major expenses, not the routine oil changes. Because HSAs require that the insured cover the first $1000 or more in health expenses, there is incentive for the consumer to demand information about health care pricing. This puts market pressure on the providers, and is the beginning of dramatic change in the system.
The most exciting thing about HSAs is this potential impact they could have on the cost of health care. No system has yet been devised in the history of mankind that does more to increase quality and lower prices than a competitive market system. As more and more consumers begin to own health savings accounts, health care providers will be forced to compete for their business by providing better quality service and better prices.
The other factor in play is the financial motivation the individual will have to stay healthy. The vast majority of health care spending today is due to degenerative diseases such as high blood pressure, diabetes, metabolic syndrome, cardiovascular disease, and other modern ailments that are primarily the result of lifestyle choices. The consumer who wisely spends his Health Savings Account dollars on preventative care (which can be done tax-free) and pays attention to diet and exercise could be rewarded with a substantial amount of money in their Health Savings Account by age 65. As an epidemic of diabetes and other obesity-related diseases loom over us, it is nice to see the government setting up a system that rewards healthy behavior.
Health savings accounts have the potential to be a powerful force of change in the healthcare system. By instituting competitive pressures, encouraging greater price transparency, and rewarding consumers who are proactive about their health, the growing adoption of Health Savings Accounts will help make health care more affordable for everyone.
Posted by Wiley Long at 11:39 AM | Comments (0)