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June 23, 2006
Can Health Savings Accounts Relieve Healthcare Increases for Small Businesses?
Approximately 60 percent of businesses with 50 or fewer employees were hit with rate increases of 10 percent to 15 percent when they renewed their group medical coverage during the past six months, according to the Council of Insurance Agents & Brokers. Another 17 percent of small businesses faced hikes of 16 percent to 20 percent. Most medium-size and large businesses also faced double-digit percentage increases for health insurance.
By turning to Health Savings Accounts, many small businesses can reverse this trend.
The council's survey found that most employers are continuing to shift more health care costs to their employees by increasing deductibles, co-pays and out-of-pocket maximums. Employees at many businesses also now have to pay more for prescription drugs.
Many employers of all sizes are turning to high-deductible health plans, combined with a health savings account, in order to control costs, the survey found. Two-thirds of the benefits brokers surveyed had sold an HSA plan during the past six months.
Learn how Health Savings Accounts can benefit your small business at HSA for America.
Posted by Wiley Long at June 23, 2006 09:37 AM