« May 2006 | Main | July 2006 »
June 30, 2006
More Opportunities Exist for Health Savings Accounts
Health Savings Accounts (HSAs) are designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis. HSAs will continue to be popular and will continue to meet the needs of patients. However, John Goodman, president of the National Center for Policy Analysis, says we are not fully taking advantage of them. He points out, the greatest opportunity for health savings accounts is with the chronically ill.
Healthy people tend to interact with the healthcare system episodically. Once in awhile they go to the emergency room or take a prescription drug. On these occasions, they gain knowledge that improves their skills as medical consumers. But it may be several years before they use that knowledge again, by which time it may be obsolete.
On the other hand, the chronically ill are different. Their treatments are usually repetitive, requiring the same procedures, visits and/or medicines, week after week, year after year. Consequently, cost-saving discoveries by these patients are not one-time events. Rather, they pay off indefinitely.
Numerous studies have found the chronically ill can reduce costs and improve quality by managing their own care. But healthcare management is difficult and time-consuming. So patients should reap both health rewards and financial rewards from making better decisions. Insurers should be able to create versatile HSA accounts for patients with differing chronic conditions. They should be able to adjust the accounts' funding to fit specific circumstances, says Goodman.
As Health Savings Accounts evolve, more consumer-driven savings opportunities will become available to more segments of the population.
Learn how Health Savings Accounts work and how they can benefit you buy visiting: http://www.health--savings--accounts.com
Posted by Wiley Long at 09:28 AM | Comments (0)
June 29, 2006
Long Term Care on your Health Savings Account
As more Americans realize they will be needing long term care insurance, they worry about paying for it on top of already-high health costs. "For millions, there's a simple answer," says Cameron Truesdell, CEO of LTC Financial Partners. "Just use some of the money that's already in your Health Savings Account."
Not everyone has a Health Savings Account, but more than three million do, up from one million in March 2005, according to a White House fact sheet (April 5, 2006). The number is projected to grow to 45 million by 2010.
"When it comes to financing LTC protection, your HSA is like found money," says Truesdell. "Hardly anyone knows this. We're spreading the word through our business partners and to consumers directly."
What if you don't have a Health Savings Account? Consider setting one up. Most Americans can participate. Those already covered by government health benefits -- through Medicare or Medicaid, for example -- are generally not eligible. You can open an HSA with a bank, credit union, insurance company, or other approved organization. Employers may also set up plans for their employees.
Should you set up an HSA just to pay for long term care insurance? "No," says Truesdell. "If LTC protection is your only objective, there are more direct funding methods. But if you're looking for more comprehensive health-care financing, the LTC factor can be a great trigger. It can motivate you to do a smart thing overall."
Learn more about all the advantages Health Savings Accounts offer.
Posted by Wiley Long at 09:01 AM | Comments (0)
June 27, 2006
AMA Retail Clinic Guidelines will benefit Health Savings Account owners
The American Medical Association announced it has adopted a set of principles to help ensure that health savings account owners, and all patients who visit retail-based health clinics receive "optimal" health care.
The AMA's eight guidelines are generally broad, asking the in-store clinics to follow state laws and general medical protocols.
The clinics should also establish ways to interact with local physicians, use electronic health records, inform patients of nurse practitioners' qualifications and keep the facilities sanitary and hygienic.
The guidelines do not address specifics, such as how many clinics a physician should be allowed to supervise.
Walgreen Co. will open its first in-store health clinics nationwide this summer in St. Louis and Kansas City. The clinics will be operated by Take Care Health Systems of Conshohocken, Pa.
The 10 clinics are believed to be among the first of their kind in the St. Louis area, and part of a trend by pharmacy chains, such as Chicago-based Walgreens, to move beyond their core prescription drug business. Patients will be able to get health screenings, vaccinations and care for common ailments from nurse practitioners -- all without an appointment.
Take Care's nurse practitioners, who will be able to write prescriptions, also will have a relationship with an off-site physicians' group, as mandated by state law. Still, some physicians have scoffed at the idea of nurse practitioners having so much autonomy.
A 2005 Harris Interactive poll found 78 percent of the public thinks the clinics could provide a fast, easy way to receive basic medical services, but 75 percent raised concerns about the quality of care at such clinics.
http://www.health--savings--accounts.com
Posted by Wiley Long at 10:12 AM | Comments (1)
June 26, 2006
Hearing on Health Savings Accounts by Ways and Means Committee
Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, announced the Committee will hold a hearing on Health Savings Accounts (HSAs) on Wednesday, June 28, in the main Committee hearing room, 1100 Longworth House Office Building, beginning at 10:30 a.m.
Oral testimony at this hearing will be from invited witnesses only because of time constraints. Witnesses will include experts on health insurance issues, health savings accounts and members of the business community. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.
FOCUS OF THE HEARING:
In continuing the Committee's consideration of health care financing, the hearing will focus on real world examples of people and businesses with experience using or providing Health Savings Accounts. This real world experience will provide valuable insight in the Committee's future consideration of HSA adjustments. The panel witnesses will describe the key components of HSAs and HSA-eligible health insurance plans. Also, the witnesses will provide information on key demographic trends in HSA use, insurance premium costs and affordability, and health insurance benefit levels. Finally, witnesses will provide testimony regarding the impact of HSAs on consumers and business.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Please Note: Any person(s) and/or organization(s) wishing to submit for the hearing record must follow the appropriate link on the hearing page of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov, select “109th Congress” from the menu entitled, “Hearing Archives” (http://waysandmeans.house.gov/Hearings.asp?congress=17). Select the hearing for which you would like to submit, and click on the link entitled, “Click here to provide a submission for the record.” Once you have followed the online instructions, completing all informational forms and clicking “submit” on the final page, an email will be sent to the address which you supply confirming your interest in providing a submission for the record. You MUST REPLY to the email and ATTACH your submission as a Word or WordPerfect document, in compliance with the formatting requirements listed below, by close of business Wednesday, July 12, 2006. Finally, please note thatdue to the change in House mail policy, the U.S. Capitol Police will refuse sealed-package deliveries to all House Office Buildings. For questions, or if you encounter technical problems, please call (202) 225‑1721.
FORMATTING REQUIREMENTS:
The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. The Committee will not alter the content of your submission, but we reserve the right to format it according to our guidelines. Any submission provided to the Committee by a witness, any supplementary materials submitted for the printed record, and any written comments in response to a request for written comments must conform to the guidelines listed below. Any submission or supplementary item not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All submissions and supplementary materials must be provided in Word or WordPerfect format and MUST NOT exceed a total of 10 pages, including attachments. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. All submissions must include a list of all clients, persons, and/or organizations on whose behalf the witness appears. A supplemental sheet must accompany each submission listing the name, company, address, telephone and fax numbers of each witness.
Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.
To learn more about Health Savings Accounts, visit us at: http://www.health--savings--accounts.com
Posted by Wiley Long at 08:34 AM | Comments (0)
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 09:37 AM | Comments (0)
June 22, 2006
House should consider Health Savings Account improvements
Last month, the United States Senate scheduled a "Health Week" to consider modest changes to the health care system. It failed to pass anything. The House of Representatives can do better. It can make serious progress in health care reform by considering legislation that would meaningfully change the health care system to improve access and affordability.
The House of Representatives should consider policies that promote personal control over health care dollars, expand consumer choice and competition, and reduce the regulation of health care. A key aspect will be to make improvements to Health Savings Accounts.
A key objective of Health Savings Accounts is the promotion of direct payment of health care dollars, without a tax penalty, to doctors and other medical professionals. This aspect of HSAs levels the playing field in the marketplace between traditional health insurance and these new tax-free payment arrangements. Ideally, Congress should separate the savings component of HSA arrangements from the federally designed high-deductible health plan requirement. This concept is supported by several free-market think tanks, including the National Center for Policy Analysis (NCPA) and the Cato Institute. This change would encourage individuals to save for their health care expenses and give them full control over how best to use those savings, whether for premiums, deductibles, or other cost-sharing requirements.
At the very least, the House of Representatives should make technical improvements to the design of HSAs. First, individuals who buy their own HSA policy should be allowed to use the HSA to pay premiums, which they cannot do today. To this end, Representative Sam Johnson (R-TX) has introduced the "HSA Premium Affordability Act" (H.R. 5586) to allow individuals to use their HSAs to purchase non-group coverage under a high-deductible health plan. Second, the contribution levels for HSAs should be increased to match total out-of-pocket expenses, not just the deductible. Finally, changes should be made to better coordinate HSAs with other health accounts, such as Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs). For example, individuals and families should be able to transfer funds from these accounts into their HSAs or, in the case of an FSA, to take the balance as taxable income. To these ends, Representative Eric Cantor (R-VA) has introduced the “Tax Free Health Savings Act” (H.R. 5262), a comprehensive HSA proposal that reflects several of these recommendations.
Let's hope the House of Representatives will do a better job than the Senate at promoting Health Savings Accounts. Learn more about HSAs at: http://www.health--savings--accounts.com
Posted by Wiley Long at 09:23 AM | Comments (0)
June 21, 2006
Health Savings Accounts Spur Innovations in Physician Services
Health Savings Accounts (HSAs) are leading to new models for the delivery of medical services. HSAs allow patients to directly control their health care dollars. Because they have a financial stake in their own spending, patients have incentives to shop for the best price and to make tradeoffs between convenience and cost.
Insurance record keeping and claim filing represent a significant expense for physicians. Physicians can speed up their cash flow and reduce billing costs by attracting patients who pay cash or use the debit cards that come with most health savings accounts. Thus a growing number of medical providers are offering innovative services to meet the demand of empowered patients.
These new physician services tend to have two characteristics: (a) they offer patients greater convenience and (b) they step outside normal reimbursement channels — requiring payment at the time of service, accepting insurance reimbursement from only a handful of large provider networks, or requiring insured customers to file their own claims.
Convenient Service: Telephone Consultations. Many medical concerns can be resolved with a phone call. However, few insurers reimburse physicians for telephone consultations or e-mail exchanges. As a result, patients often find access to their physician is limited — especially after-hours and on weekends. Entrepreneurial providers, on the other hand, are making it easy for patients who pay cash to reach them by phone.
Doctokr is Virginia physician Alan Dappen, who practices medicine almost entirely by telephone and e-mail contact. He charges for consultations based on the time and treatment needed. He bills for 5-minute increments ranging in price from $15 to $22.50. A simple consultation to request medication refills costs from $10 to $15 for up to 5 medications.
TelaDoc Medical Service offers medical consultations by telephone, nationwide and around the clock. Each call costs $35, plus a nominal monthly membership fee — far less than a visit to the doctor's office at $80 to $100, the urgent care clinic at $150, or the emergency room at $300-plus. TelaDoc has physicians licensed to practice in each state. The subscription-based service keeps patients medical histories electronically, and a doctor usually returns calls requesting a consultation within 30 to 40 minutes (if it takes more than 3 hours the consultation is free). TelaDoc is not intended to replace primary care physicians, but to provide another avenue of treatment when a patient's regular physician is not available.
With Doctor on Call, available as a benefit through employer health plans or individually as a stand-alone service, subscribers have immediate telephone access to board-certified physicians. According to Doctor on Call, patients can avoid many ER visits by obtaining information over the phone. For about $10 per month ($5 if offered through an employer health plan), an enrolled family can make an unlimited number of calls. Participating physicians do not diagnose or prescribe medications, but they answer any health questions a patient may have.
Convenient Service: Walk-In Retail Clinics. According to a study in the American Journal of Managed Care, nearly half of patients wait more than 30 minutes, on the average, to see a doctor in an office or clinical setting. However, a new type of walk-in health clinic is conveniently located inside retail stores — often next to a pharmacy, making additional trips to fill prescriptions unnecessary. Waiting is minimal — patients often receive a beeper which allows them to shop for a few minutes until they are called.
MinuteClinic has pioneered retail-based health care in the United States. These in-store clinics allow patients convenient access to routine medical services such as immunizations and strep tests at low prices. MinuteClinics are staffed by nurse practitioners, who are qualified to provide routine medical services. Most office visits take only 15 minutes, and treatment costs range from $28 to $110 — with most services costing $49 to $59.
RediClinic, a venture backed by AOL founder Steve Case, plans to open 500 walk-in clinics within the next three years. Offering numerous lab tests for prices nearly 50 percent less than traditional physician offices, RediClinic has forged partnerships with Walgreen's, the nation's largest drugstore chain, and Wal-Mart, the nation's largest retailer. Wal-Mart expects to expand the number of stores with walk-in clinics from 11 to 50 this year.
Solantic, a chain of free-standing walk-in clinics based in Florida, is staffed by physicians who can provide more extensive services than clinics staffed by nurse practitioners. Solantic aims to provide convenient health care for a low price, offering services ranging from $65 to $165. Patients can register online and fill out their medical history prior to coming to the clinic.
Convenient Service: Laboratory Tests. A number of laboratory services are now available without a doctor's visit. Patients who want X-rays or lab tests may request them online; a physician reviews the request and orders the tests. Results list actual scores, in addition to low and high ranges that might warrant consultation with a physician.
One firm, HS Labs (BloodWorksUSA.com), allows patients to register and pay a fee online, then stop by one of a nationwide network of collection points where a technician draws a blood sample. HS Labs offers a blood workup that examines numerous metrics for about $80 plus a $15 order processing fee. A competitor, Direct Laboratory Services, Inc. (DirectLabs.com), offers a similar battery of tests for $89. The blood profile provides a biochemical assessment of health based on more than 50 individual tests including blood count, thyroid profile, lipid profile, liver profile, kidney panel, profile of minerals and bone, fluids and electrolytes and tests on diabetes. The company works with more than 5,000 labs so the service is available in most of the country. Results are available online within two to three days, by mail within 5 days and will be forwarded to the patient's regular physician on request.
Lower Prices: Cash Friendly Practices. Some physicians are seeking alternatives to the high overhead and low reimbursements associated with third-party payment.
CashDoctor.com is a loosely-structured network for physicians, dentists, chiropractors, pharmacies, laboratories, hospitals and out-patient facilities across the country that are "cash friendly." CashDoctor is not affiliated with any insurance company or provider network. Practices styles and fee schedules are available online.
SimpleCare is another physician association designed for patients who pay cash for incidental medical needs and rely on medical insurance only for major medical claims. SimpleCare requires patients to pay in full at time of service. Since its doctors do not need insurance billing departments, they can offer much lower prices.
Higher Quality: Electronic Medical Records. Another innovative feature of many new health care ventures is the use of electronic medical records (EMR). Storing medical records electronically improves care coordination by making it easy to access patient information. It also allows the use of error-reducing software to file prescriptions electronically, replacing physician handwriting — a major source of treatment errors. Only about 15 to 20 percent of physicians' offices use electronic medical records. But many of the new services do — including TelaDoc, MinuteClinics, RediClinic and Solantic.
Higher Quality: Personalized Care. Some physician practices offer "concierge" or "boutique" medicine. They care for a limited number of patients — but provide virtually unlimited access to a physician. Many traditional practices have 2,500 to 3,500 patients per physician; these doctors have only 300 to 600 patients. Some accept insurance plans, some don't. Participating families often pay an annual fee of $1,500 to $4,000 per patient. In return they can make appointments for same-day, hour-long office visits. Patients are often given their doctor's personal cell phone or pager number for 24-hour-a-day access.
Conclusion: As patients manage more of their own health care dollars, they will begin to seek care that which is both convenient and low cost. Empowered consumers will compare medical services and shop for care the same way they shop for other goods and services.
Learn more about Health Savings Accounts at HSA for America.
Posted by Wiley Long at 08:36 AM | Comments (0)
June 19, 2006
Insurers expanding access to information for Health Savings Account owners
Health Savings Account owners shopping for information about the cost and quality of medical care are finding it easier to compare prices as more health insurers compete to become more consumer-friendly.
Insurers are coming up with new ways to provide price and service information to customers who are being called on to take more responsibility for their health insurance.
Aetna Inc. recently announced they will provide online access to physician costs, clinical quality and efficiency information.
The information will be available to all Aetna members. But the new information will be particularly useful to consumers with high-deductible health plans tied to health savings accounts or health reimbursement arrangements.
"While purchasing health care is a much different decision than buying a house or a car, we firmly believe that consumers should ultimately have access to exactly what they're demanding - the same kind of objective cost and quality information that is readily available when making other significant purchases," Ronald Williams, chief executive and president of Aetna, said in a statement.
Aetna launched a price transparency program in August 2005, allowing consumers to research physician pricing before treatment. Between 600 and 1,000 consumers a month have since accessed the information for about 5,000 physicians and physician groups in the Cincinnati area.
With the expansion in August of this year, information on clinical quality and efficiency will be available for nearly 15,000 specialist physicians. Specific pricing will be available for more than 70,000 physicians.
Doctors' pricing would cover 30 procedures by each physician, with a total of 800 procedures when accounting for various physician specialties.
Grace-Marie Turner, president of the Galen Institute, a research organization focusing on health and tax policy in Washington, endorsed the Aetna plan.
"Consumerism is something taking hold not just in this country, but in Europe," she said Tuesday. "They're seeing that more information is out there to help them make decisions. You can't have one-sixth of our economy operate on a different level than the rest of our economy."
Humana Health Insurance, based in Louisville, Ky., offers Web-based consumer pricing. Minneapolis-based UnitedHealth Group provides information on quality and costs for doctors, hospitals, dental care and pharmacies.
Quality is gauged in consultation with expert groups, said Daryl Richard, a spokesman for UnitedHealth Group.
Philadelphia-based Cigna announced in April that it will provide online health care cost and quality information, including cost data about outpatient surgery procedures and radiology services. The information will be provided initially in New Hampshire and Wichita, Kan.
And Medicare earlier this month published what it pays for 30 common procedures and reported how frequently hospitals perform the procedures.
The release of the information fits with the Bush administration's strategy of moving more people into health savings accounts and high-deductible insurance policies. Such insurance policies require people to bear more of the initial medical expenses.
Bush administration officials say that as more people buy such policies, cost increases would slow because consumers would do more to seek the best deal or decide against a medical service.
Merrill Matthews, director of the Council for Affordable Health Insurance, a research and advocacy group in Alexandria, Va., welcomed Aetna's move.
"The problem we've had in the past is if you had managed care with a $20 copay or traditional HMO, there's really very little incentive to care what the price is," he said.
In addition, because the price is negotiated between the insurance company and provider, consumers traditionally have difficulty finding the price for various services, he said.
Learn how to get your own Health Savings Account.
Posted by Wiley Long at 08:48 AM | Comments (0)
June 16, 2006
Website would let Health Savings Account consumers compare prices
Health Savings Account owners in Massachusetts will soon be armed with a new tool to help them shop for the best health care under a key provision of the state's ambitious new health care reform law.
One of the goals of the new law is to drive down the cost of health care in part by arming consumers with the ability to compare prices on everything from asthma inhalers to Caesarean sections.
The law requires the state to set up a health information Web site that not only allows consumers to compare the quality of hospitals and clinics, but would also include the average payment each charges for a range of services, including office visits, diagnostic tests, surgeries and other therapies.
"Most consumers who go in for a mammography or testing or radiology have no information on the quality or price," said Amy Lischko, commissioner of the Division of Health Care Finance and Policy. "If you have to pay a 20 percent co-payment you are going to be very interested in looking at those prices."
The state already runs a Web site that includes some information -- with major loopholes.
Instead of listing an actual average dollar amount for an operation or procedure, the site only lists whether a hospital is among the most expensive, middle or least expensive when compared to others.
The new Web site will have prices, not only for hospitals, but for the cost of prescriptions at individual pharmacies. That should be helpful those who want to compare prices, especially in non-emergency situations.
"Maternity is a big area where consumers shop around for quality and price," Lischko said.
Cost can vary widely, even in the same geographic area.
The average delivery cost for a low-weight baby in the Boston area jumps from $1,800 at Cambridge's Mount Auburn Hospital to $5,300 at Massachusetts General Hospital, according to the state Division of Health Care Finance and Policy.
Being able to compare pharmacy prices could also be a big help for those on fixed incomes who don't have prescription insurance coverage.
To post the hospital prices, the state first has to collect raw data from major insurers. To find the average price for a knee replacement at a specific hospital, for example, the state will ask each of the major insurers, like Harvard Pilgrim Health Care or Blue Cross and Blue Shield, how much the hospital charges them -- and then come up with an average.
Some health care providers are leery about the new Web site.
"Transparency is a good direction, but strong public disclosure needs to be backed up with accurate information," said Massachusetts Hospital Association spokesman Paul Wingle.
Hospitals would prefer the state use clinical records that reflect the actual care provided to patients, rather than using billing information, to get a fuller picture of costs, he said.
Wingle also said hospitals were concerned that the statistics might not take into account that some hospitals may serve a population -- like the elderly -- who may require more expensive care for the same kind of operation.
"We don't think consumers should ever make health care decisions based on Web sites, even the best Web sites," he said.
Not everyone is worried.
Charles Baker, president and CEO of Harvard Pilgrim Health Care, said posting information on a Web site is key to setting the groundwork for a public discussion on health care.
"If you really want to improve quality and create value and do something about cost, the first thing you have to decide is what you're going to measure and how you keep score," he said.
Other states have already begun posting similar information.
Visitors to a Web site maintained by the New Hampshire Department of Insurance can investigate the costs of certain procedures and operations. The average price for a hip replacement in the Granite State, for example, is $24,162, with actual costs ranging from as low as $11,140 and as high as $41,656.
In Florida, consumers can compare the price of prescriptions at pharmacies across a geographic area. A search for the cost of the same prescription for Flonase allergy nasal spray in the Miami area, for example, found prices ranging from $69 to $150.
The new health care reform law, signed by Gov. Mitt Romney in April, makes Massachusetts the first state to require health insurance for virtually all its citizens, including the state's estimated 500,000 uninsured.
Under the new law, the Web site must be up and running by July, although it will initially consist of a link to the state's existing Web site. Lischko said she hopes to have the additional information online as soon as the state can collect the data.
Visit us at http://www.health--savings--accounts.com
Posted by Wiley Long at 10:36 AM | Comments (0)
June 15, 2006
United Healthcare reports consumers are selecting HSA plans at rapid pace
United Healthcare announced that membership in its consumer-driven health (CDH) plans has surpassed 1.75 million people. This growth reinforces their position in striving to transform the health care system to one driven by more informed and empowered consumers, helped by consumer support tools that facilitate a new and more transparent health care market.
United Healthcare continues to be a leader in the advancement of health insurance plans connected to a Health Savings Account (HSA).
United Healthcare membership is growing at a rapid pace across employers of all sizes as well as in the individual market. Consumers in plans connected to HSAs increased 75 percent from June 2005, with more than 750,000 new individuals participating in the past year. About 60 percent of the CDH membership selected the plan even when their employers also offered more traditional, non-CDH options, further illustrating that consumers are driving this rapid growth through strong interest in account-based plans.
"Consumers are becoming much more comfortable with account-based plan designs," said Mike Tarino, CEO of Definity Health, the United Healthcare business that manages consumer-driven plans and activation strategies. "More than 13,000 employers have already turned to us to incorporate a consumer-driven plan design into their benefits strategy, and our CDH membership among large, national employers alone recently topped 1 million."
Activation Programs Are Key
Tarino attributes the continued strong interest and enrollment in consumer-driven plans in large part to the activation programs pioneered by Definity Health, which include personalized health messaging, monthly health statements and health coaching. These strategies are tailored to each individual consumer, preparing them to take informed action, making it easier to navigate the health care system, enhancing their ability to focus on healthy lifestyles, and maximizing the value they receive for their health care dollars.
United Healthcare is also extending these activation programs to enrollees in non-CDH plans, creating a more consumer-centric approach among participants in all types of health benefit programs. Already, approximately 1 million consumers in non-CDH plans are receiving a deeper and more personal level of support on their health care decisions through these efforts, effectively enabling behavior change and creating a simpler experience for any health care consumer, regardless of plan design.
Definity's activation programs are producing tangible changes in the health care behaviors of consumers. For example, the personalized messaging program, which delivers personally relevant health messages through multiple formats, has found that consumers who read their personalized messages show:
- 240 percent higher rates of mammography
- 31 percent increase in the use of pill-splitting
- 100 percent increase in the use of mail order pharmacy services
These and other early results indicate that unique and integrated programs that help people get to the appropriate care provider and pursue the optimum intervention positively impact their health care outcomes, as well as related costs.
"More and more individuals and employers are realizing that they can influence positive changes in consumer health through innovative approaches like these," Tarino said. "Engaging and activating consumers can drive significantly higher levels of awareness about affordability, accessibility and quality, and we believe strongly that those benefits should not be limited just to individuals in HRA and HSA plans."
United Healthcare companies currently serve 710,000 members enrolled in HSAs as well as 1,045,000 HRA enrollees. Approximately one-third of the large and mid-size employers served by United Healthcare offer one of the company's consumer-driven health plans, a strong indication that a consumer approach to health care is quickly becoming the mainstream.
Learn more about Health Savings Account and compare United Healthcare plans at http://www.health--savings--accounts.com
Posted by Wiley Long at 10:17 AM | Comments (0)
June 13, 2006
Feds To Help HSA Shoppers Find Bargains
To help Americans become smarter health care shoppers, Medicare will publish a range of what it pays for 30 common procedures and report how frequently hospitals perform them, federal officials say.
The release of the information fits with the Bush administration's strategy of moving more people into health savings accounts and high-deductible insurance policies. Such insurance policies require people to bear more of their initial medical expenses.
As more people buy HSA plans, the administration maintains, cost increases would slow because people would work harder to look for the best deal or decide they don't really need a medical service after all.
The new Medicare data released covers such procedures as heart operations, the implant of heart defibrillators and back and neck operations.
The most common elective surgery paid for by Medicare is the replacement of a hip or knee. The government information shows that those procedures cost an average of $11,761. Medicare paid between $9,992-$12,173, on average.
The government broke the numbers down to the county level. In Baldwin County, Ala., for instance, three hospitals provided 373 operations for knee or hip replacement, and Medicare paid those hospitals a range of $8,859 to $8,936.
The government also noted how many hip or knee replacements each Baldwin County hospital performed. One hospital in the county performed 11, another 66, and still another, 296. Officials say the frequency of a particular procedure can be an indication of quality, with more being better.
"There is a large variation in how much you pay for services if you go to different doctors or hospitals or providers," said Mark McClellan, administrator for the Centers for Medicare and Medicaid Services. "There's also significant variation in the quality of care you can get, so this is important information for anyone to pay attention to."
Tom Nickels, senior vice president of government relations for the American Hospital Association, said the information had value but was limited in its usefulness. People don't need to know what Medicare pays for an operation as much as they need to know the details of their own insurance policy, he said.
"It's worth looking at, but it doesn't supplant the need to know what your co-insurance obligation is," Nickels said.
Mike Leavitt, secretary of the Department of Health and Human Services, said the government was taking the initiative when it comes to transparency. But the goal is for the private sector to follow, he said.
"The federal government is the biggest single purchaser of health care in America, and by taking steps to post prices and quality data, we hope to encourage more insurance companies, hospitals, clinics and doctors to do the same," Leavitt said.
Trade groups representing businesses said the release of the data was an important first step in empowering consumers.
"Unfortunately, today's consumer is completely unaware of the cost of their health care until they receive a bill in the mail," said the Business Roundtable, an association of chief executive officers. "By making cost information available, consumers will be better informed on pricing, and better able to make educated health care decisions.
The data about the cost of a particular service should be especially useful for the uninsured as they seek steeper discounts, Leavitt noted, because they don't have someone negotiating cheaper rates on their behalf. They can be charged three times as much as what the government or a private insurance company pays, he said.
Find out more about Health Savings Accounts.
Posted by Wiley Long at 09:34 AM | Comments (1)
June 12, 2006
New site will help HSA owners compare hospital statistics
For the average person, hospital choice is often based on health-insurance company requirements, proximity to home and recommendations from doctors, family and friends.
More quantitative data traditionally has been hard to come by, especially in an easily comparative format.
But as employers shift more of the health care decision-making and spending responsibility to workers, access to comparative data is becoming more necessary so that individuals can make smart decisions about when and how to spend their money.
Beginning in July, consumers will be able to compare southeast Michigan hospital quality, safety and cost information by logging on to a new Web site.
The Greater Detroit Area Health Council plans to launch a Web site next month that will provide easy-to-read, reliable, comparative information on each of the 41 hospitals in southeast Michigan.
The health council hopes to take the first step toward making that information available to southeast Michigan residents when it announces its planned Web site, www.savelivessavedollars.org, today at the Detroit Regional Chamber's Leadership Policy Conference on Mackinac Island.
The health council -- known as GDAHC -- is a nonprofit organization dedicated to improving community health care quality and reducing costs for southeast Michigan residents. Its members include business, labor, health care providers, health plans and community agencies.
The Web site it plans to launch next month will allow individual consumers to search data based on what's most important to them: number of patients, mortality rates, complication rates, lengths of stay and cost.
GDAHC will collect the data from the national Centers for Medicare and Medicaid Services. Hospitals are required to report the standardized quality data to the federal health organization.
"This is a Web site that will help consumers learn about hospitals and their performance," said health council President and CEO Vernice Davis Anthony. "It will become a one-stop portal for health care information."
Kate Kohn-Parrott, director of integrated health care and disability for the Chrysler Group, said the new Web site is essential for creating an environment for healthier people and smarter consumers in the region.
"One of the things we're trying to do at the Chrysler Group is to make sure we have informed consumers," Kohn-Parrott said. "If you buy a stereo today you can go on the Internet and compare quality and cost. When you think about health, that data doesn't exist. ... This information is going to help" consumers "make better health care decisions."
Initially, the Web site will only contain hospital performance data, but over the next 10 to 12 months, it will expand to provide other data and health care information such as questions to ask your doctor, Anthony said.
The Web site is the latest offshoot of GDAHC's multiyear Save Lives, Save Dollars initiative. It is aimed at improving health care quality and reducing costs across southeastern Michigan.
The council estimates start-up and operating costs for the Web site at about $200,000 annually for the first couple years. The money is coming out of the Save Live, Save Dollars budget. The money was contributed by about 30 organizations, including automakers, health plans, physicians groups and insurers.
"In terms of improving quality and reducing costs, the consumer Web site is an important piece of the puzzle because it will provide reliable, quality and comparative information," General Motors Corp. Executive Director of Health Care Initiatives Woody Williams said in a news release.
"It is an important driver that will encourage our health care providers to provide the right care at the right time. ... We expect to see health care costs decrease."
At HSA for America, we believe more of this type information needs to become available in all states.
Posted by Wiley Long at 10:24 AM | Comments (0)
June 09, 2006
White House Pushes for Health Savings Account Blue Cross Plan
Blue Cross Blue Shield, which has many enrollees in the federal employee health program, would like to add a health savings account option for government workers and retirees under legislation proposed by the Bush administration.
The Office of Personnel Management, which administers the Federal Employees Health Benefits Program, recently sent a draft bill to Congress that would modify a law that limits Blue Cross to two plans. OPM officials said they would use their regulatory powers to steer Blue Cross into sponsoring a high-deductible plan featuring a health savings account.
The proposal is drawing opposition from the National Active and Retired Federal Employees Association, which contends that high-deductible plans with health savings accounts tend to siphon younger and wealthier enrollees from traditional plans and make it more difficult for traditional plans to hold down premium increases.
Jackie Fishman, a spokeswoman for Blue Cross Blue Shield, said, "We are watching to see what Congress is going to do and what they will allow us to do." She noted that Blue Cross adjusts its benefit packages "based on sound actuarial information and the value we offer our customers."
The White House has championed high-deductible plans that offer health savings accounts, or HSAs, as a way for consumers to take more control of their spending for medical care. With an HSA, an enrollee makes a tax-deductible contribution to a savings account. The account is used for routine medical costs, tax-free, and the high-deductible plan covers serious illness or injury.
HSAs are available to people who are not enrolled in Medicare and do not have other insurance. Since Treasury Department rules typically exclude retirees, the OPM is offering federal retirees a similar account, called a "health reimbursement arrangement."
The president's fiscal 2007 budget proposed the statutory change so that Blue Cross could offer a third plan to federal employees and retirees. The company offers a fee-for-service standard option and a basic option that requires enrollees to stay in the Blue Cross network.
If approved, the legislation would permit the OPM to follow through on efforts to add high-deductible and consumer-driven plans to the federal employee program. In December 2004, the OPM changed its regulations to foster such plans by allowing companies other than Blue Cross to offer more than two options.
In a letter to congressional leaders, the OPM said the administration estimated that allowing Blue Cross to add a high-deductible plan would save $1.1 billion over five years and $3.4 billion over 10 years in program costs.
Those projected budget savings have drawn some skepticism on Capitol Hill because they assume that large numbers of federal employees will transfer to a Blue Cross high-deductible plan to take advantage of slightly lower premiums or the ability to build up savings for medical expenses in a tax-deferred account.
Nancy H. Kichak , an associate director at the OPM, said the estimated savings were based on Blue Cross's success in drawing enrollees to its basic option, which was introduced in 2002. She noted that Blue Cross's brand name would help the company market HSAs to federal employees and retirees.
Blue Cross has been a popular choice for many federal employees and retirees over the years. It covers about 60 percent of the enrollees and families in the Federal Employees Health Benefits Program. The standard plan has 2.1 million enrollees, and the basic option has about 261,000 enrollees. Four years ago, basic had 87,000 enrollees.
Visit http://www.health--savings--accounts.com for more information on HSAs and to compare Blue Cross Blue Shield plans.
Posted by Wiley Long at 10:38 AM | Comments (1)
June 08, 2006
Health Savings Account plans being embraced by smaller employers
With health-care costs a top issue among many small businesses and no simple solution on the horizon, Health Savings Account plans appeal to many employers because they involve workers in the process and encourage them to spend wisely, experts say.
"Employers are willing to do almost anything in an effort to try to control the increases they've been seeing year in and year out," said David Levitz, executive vice president at GCG Financial, a Bannockburn firm offering employee benefits to small and mid-size companies. "We're seeing a huge migration, a huge push toward Health Savings Accounts in an effort to control these costs," he said.
Providing top-flight health insurance for workers always has been a high priority at Loop accounting firm Ostrow Reisin Berk & Abrams Ltd.
With competition fierce to recruit and retain accountants, the firm is not about to change its focus now, even as rapidly rising health-care costs eat into profits, said Phil Dunne, administrator at the 85-employee firm.
"We've never tried to take the inexpensive way out," he said. "Our employees work hard and we need them to be healthy."
But as the firm examines the best options this summer in preparation for a Sept. 1 renewal date, what's different this time is the growing number of "consumer-driven" health plans available that include a deductible of $1,000 or more and are tied with a health savings account or health reimbursement arrangement. The plans can be set up so employees have a financial incentive to spend less on health care, often reaping the savings themselves.
In the Chicago area, 23 percent of employers offer consumer-driven health plans, while 29 percent are considering adding one in 2007, according to a survey of 310 area employers conducted by GCG Financial with Milliman Inc., a Seattle-based consulting firm. Many of the plans are new, with 12 percent of respondents indicating they added a consumer-directed plan for the first time in 2006, Levitz said.
As a result, insurers are expanding their offerings. In 2005 Blue Cross and Blue Shield of Illinois signed on 11,000 members to its first consumer-directed plans, said Kirk Pion, director of strategy innovation and delivery. Now 209,000 of its total 6.9 million members are in consumer-directed plans, compared with 5.2 million in standard PPOs and about 860,000 in HMOs, he said.
At employers offering the Blue Cross consumer-driven plans, about 45 percent of employees on average are opting for them, Pion said. Plans married with health savings accounts have minimum deductibles of $1,050 for individuals, but many firms opt for deductibles as high as $2,500 to lower monthly premiums, he said.
Tremendous growth
"Driven by small employers, we've seen a tremendous pickup in HSA growth," Pion said, noting that premiums for consumer-directed health plans tend to be about 15 percent lower than Blue Cross' most popular PPO with a $500 deductible.
Still, it's not always easy to persuade workers to try a new approach, Levitz said. Education plays a big role, while many employers also use financial incentives.
Gurnee-based Eirich Machines, a 70-employee manufacturer of industrial mixers and blenders, first considered a consumer-directed plan in 2005 when it confronted a 20 percent increase in health insurance costs, said Joe Pils, chief financial officer.
It offered the high-deductible plan with an HSA for the first time this January and encouraged employees to try it by paying the monthly premium in its entirety, while employees choosing other options paid $120 a month out of their pocket. As further incentive, Eirich contributed $500 toward single employees' health savings accounts and $1,000 for those opting for family coverage. As a result, 31 of 63 employees on the company's health insurance benefits went with the new plan, he said.
Accounting firm Ostrow also pays the full premium on an individual's consumer-directed health plan, compared with paying 80 percent of a standard PPO premium, but just seven of 55 people on the firm's insurance have opted for the HSA plan, he said. Many people are reluctant to try it because they don't understand it and are afraid of the deductible, he suggested. "Some people can make calculations and figure out their risk, but most people don't know" what their health-care expenses will be, he said.
Curbing costs
Proponents of consumer-directed health plans suggest the plans help curb costs over the long term by encouraging people to think twice before going with the most-expensive care. They encourage workers to look for lower-cost labs and clinics as an alternative to having tests done at a hospital and to choose generics over branded drugs, Levitz said.
But not everyone buys the premise. "I really don't believe people are wasting money on health care," Dunne said. "People are really busy and when you're sick is probably not the best time to be determining which anesthesiologist is the cheapest," he said.
At America's Second Harvest The Nation's Food Bank Network, a non-profit in Chicago with 108 employees, Daphne Logan, vice president of human resources, also has reservations.
"Everyone is talking about going to this consumer-driven model but I don't know that it's necessarily proven," Logan said.
For now, the non-profit is steering clear of the plans because they don't fit its culture of attracting the best workers by offering first-rate benefits, she said. "We've always had a rich benefit menu. We want to be competitive with the market," she said.
Instead, to keep premiums down, the organization has been aggressive about shopping around for the best offering, commissioning GCG Financial for help.
In the past five years its HMO premiums have increased 49 percent while its PPO premiums have climbed 59 percent, Logan said.
With more choices available, picking the best plan is becoming more complicated, even for accountants, Dunne said. "It's a confusing concept," he said. "It's hard to say one is right and one is wrong. It's such an individual decision."
HSA for America can help reduce the confusion. With extensive HSA information and the ability to compare plans side by side, you won't find a better source to learn about Health Savings Accounts.
Posted by Wiley Long at 10:22 AM | Comments (2)
June 07, 2006
Libertarian party supports Health Savings Accounts
The U.S. needs to find a solution to the health care crisis, but more government is not the answer, says Patrick Wilbur, the Libertarian candidate running for Kansas state insurance commissioner.
Wilbur says the current insurance commissioner, Sandy Praeger, has promoted health savings accounts as a way to help people manage their health insurance costs, and he will continue encouraging people to start HSAs if he is elected.
“Eventually, I’d like to see government entirely out of the health insurance business, but this is a great first step,” he said.
Wilbur says he would also support tax credits for people who start health savings accounts.
HSAs, which must be tied to a high-deductible medical insurance policy, allow people to earmark money for major medical expenses in the same way that holders of individual retirement accounts save money for retirement. HSAs have been legal in Kansas for about two years.
Wilbur believes that a free-market strategy, in which businesses and people take responsibility for their financial affairs and accept the consequences of their decisions, is the best way to solve the state’s health care crisis, according to a Nov. 21, 2005, news release announcing his campaign. He contends that giving state and federal government increased control of the medical and insurance industries will cause a steep increase in administrative costs.
Generally speaking, libertarians support a free-market economy, civil liberties, and personal freedom and responsibility.
Wilbur is the vice chairman of the Kansas Libertarian Party and a project director for the Lawrence office of Pearson Government Solutions, a company that designs, builds and operates governmental systems and services. Two years ago, he ran for the 45th District seat in the Kansas House but lost to Republican Rep. Tom Sloan.
Wilbur said he decided to seek the insurance commissioner’s office in part because he believes the health care crisis is getting worse.
“Especially with the Medicaid crisis we have in Kansas,” he said. “It’s a huge part of our budget right now, and it’s just going to get larger and larger. And I don’t see anyone doing anything about it.”
He said he hopes his campaign will help raise his party’s profile across the state.
Besides Wilbur, the candidates for insurance commissioner are Praeger, who is seeking her second term; Republican Rep. Eric Carter of Overland Park; and Democratic Rep. Bonnie Sharp of Kansas City, Kan.
Learn more about Health Savings Accounts.
Posted by Wiley Long at 09:24 AM | Comments (1)
June 06, 2006
Extra discounts for Health Savings Account owners pays off
There is a small community in rural Iowa that is so dedicated to bringing the best and most economical health care to its population that it is paving the path to a new way of thinking about health savings accounts and consumer-driven healthcare (CDH).
Benefit Source, a third-party HSA administrator based in Des Moines, Iowa spent considerable time helping several large employers implement CDH plans with health savings accounts. As it happens, one of their clients is a local hospital and its clinics. During their discussions of what had been happening locally and nationally with CDH, they decided to ask if clinics would be willing to provide an additional line item discount to employees with an HSA.
Benefits Source questioned, why not offer them another incentive above and beyond the negotiated discount with the provider and further reduce their costs to do business with our clinics? We would give patients with a high-deductible health plan a $5, $10 or maybe even a $15 reduction on their payment. In turn, they would drive business to local clinics instead of to the competition.
This, of course, is the whole idea of consumer-driven health care. But the thing I love about this concept is that the hospital and clinics are astute enough to know and understand that consumerism could be good for them as well.
Deeper discounts by a few select physicians - sound familiar? It's not too different from the HMO concept. However, as we all know, the problem with HMOs was control. Providers and employers reduced the selection of doctors and choices, thinking that the employees would be willing to accept that for a reduction in cost. What we found out was that, in many cases, choice was more important. By offering a PPO and allowing employees to make their own "contracts," we open the door to the real reason for consumer-driven care.
If you had told me 15 years ago that companies would be sharing marketing ideas with hospitals and teaching employees to shop for the competitive prices of health care, I would have told you that you were crazy! It just goes to show you that change is inevitable for us all.
We must all take a role in changing the future of our health care. Until we become consumers and demand to know the costs associated with services, we really won't see the benefits of consumer-driven health care.
The problem with the CDH is that we teach employees and patients to ask for this information, but all too often this is a tedious and fruitless process. The patient is directed to several people, none of who can give a straight answer on what things cost. It is all but impossible to compare prices.
The Iowa clinics' line item deduction approach is simple enough for all of us. Is this the start of a path to our health care future? I sure hope so.
Learn more about CDH and HSAs at http://www.health--savings--accounts.com
Posted by Wiley Long at 09:03 AM | Comments (0)
June 05, 2006
WI Legislators seek 'transparency revolution' for Health Savings Account owners
A leading legislative architect of health savings accounts (HSAs) is laying the foundation to take consumer-based health care to the next level. Rep. Paul Ryan, R-Wis., who co-authored the HSA provision in the Medicare Modernization Act of 2003, now has designs on making health care costs more transparent for consumers.
The traditional third-party health care payment system relies on someone other than the consumer to pay the bills and is not sustainable, says Ryan. He is a staunch proponent of consumer-directed health care, but is bothered by the absence of readily obtainable comparative data on health care costs and quality.
It took Ryan more than three years to get an answer from the Government Accountability Office (GAO) on why southeastern Wisconsin pays more for health care than comparable regions and markets elsewhere. Getting comparative health care data “should take three minutes or a visit to the HR manager,” he remarked.
The GAO’s Aug. 15, 2005, report as well as proprietary studies conducted by employers convinced Ryan that health care costs vary greatly among health care institutions in the same region. For example, a common bypass procedure at one hospital in Milwaukee costs $47,000, but $120,000 at another hospital within eight miles. The more expensive one had the best marketing and billboards, Ryan said, but the studies indicated that the best quality care was available from a hospital that charged $65,000 for the procedure.
Ryan wants health care institutions voluntarily to provide more transparent health care costs so consumers will be able to make more informed decisions based on “apples to apples” comparative cost and quality data. His stance is in line with the Bush administration’s health care policy, which, as the administration notes in a web site overview, seeks a “transparency revolution” in health care costs.
As of this year, the administration is requiring transparency from insurance plans participating in federal programs. The Federal Employees Benefits Program and the military’s Tricare system are asking contractors to provide price and quality information. The president also is asking health care institutions and insurers to step forward and make information on prices and quality available to all patients.
Ryan hopes the health care industry will respond and start reporting comparative health care costs and quality data, but he said that if it does not step up to the plate, the government will do it for them. As he put it, “there is a divorce between costs and quality in health care and consumers that has to end.”
Advanced refundable tax credit
Transparency alone won’t solve the health care crisis, Ryan acknowledged. He already has co-sponsored the Health Coverage for the Uninsured Act (H.R. 1872), which proposes an advanced refundable tax credit to help the more than 45 million Americans without health insurance obtain health care. Under President Bush’s health care proposal, low-income families would be able to receive up to $3,000 in a refundable tax credit to purchase HSA-qualified insurance.
Bush has floated this proposal in previous years, and been criticized for not adequately budgeting for the proposed credit. When asked how the credit would be funded, Ryan responded that he is calling for $150 billion over 10 years. He didn’t elaborate on which budget offsets he favored, saying instead that Congress would need to “think out of the box” to create “enough fiscal space to account” for it.
“We are at a proverbial fork in the road” with health care, he commented, describing the current system as “imploding.” In Ryan’s view, the country has a choice with health care between socialism or consumerism, which he described as consumers “voting with their feet.”
‘Tax shelters for the wealthy and healthy’
Although Ryan is convinced consumerism is the best model, he acknowledged that consumer-directed health care has had its critics from its infancy.
When HSAs surfaced in the Medicare legislation, Rep. Pete Stark, D-Calif., issued a statement predicting that they would “destroy health care for the employed who get their health insurance from employers.” Stark said HSAs would turn out to be “tax shelters for the wealthy and the healthy,” and predicted that they would advance an “objective of undercutting employer-provided health coverage.”
Not so, according to Ryan, who thinks HSAs are an essential part of health care in the future. Already, as of January of this year, 3 million people are insured through HSAs and 42 percent of HSAs were purchased by those who previously were uninsured. In addition, Ryan said that 45 percent of those purchasing HSAs earn $50,000 a year or less and 50 percent are at least 40 years old.
But transparency is key to put health care in the hands of consumers rather than health maintenance organizations or the government, he emphasized. That is why, as a long-shot candidate to chair the House Budget Committee next year if Republicans retain control of the House, Ryan is trying to move the discussion about transparent health care costs “front and center.”
At HSA for America, we applaud the work of Rep. Ryan.
Posted by Wiley Long at 10:54 AM | Comments (1)
June 03, 2006
Health Savings Accounts create more High-Deductible health insurance buyers
Health insurance policies that qualify to work with a Health Savings Account are becoming a popular option as Americans try to cut down on their insurance costs. The number of people purchasing high-deductible plans jumped from about 3 million in January 2005 to as much as 6 million by January 2006, reports the Government Accountability Office.
Individuals purchasing health savings account plans most often pay lower monthly premiums because they agree to bear a greater share of the cost of their health care.
The high deductible health insurance policies are often coupled with health savings accounts, which allow consumers to set aside money tax free, and they can then use that money to pay for medical expenses not picked up by the insurer or for retirement.
The HSA plans paired with health savings accounts must have a minimum deductible of $1,050 for single coverage and $2,100 for family coverage. The Bush administration has aggressively pushed to make such accounts more popular by calling for further tax breaks for those who open them.
Critics of the administration's proposals say the accounts work best for younger, healthier workers, and they worry that employers are using high-deductible plans to shift costs to employees.
The GAO said the rising cost of health care coverage is the primary reason more employers offer the plans, and it noted analysts believe more employers will join the trend if the costs of insurance continues rising significantly.
The number of employers offering high-deductible insurance plans to their workers jumped from just 1 percent in 2004 to about 4 percent in 2005, the GAO noted.
Mohit Ghose, spokesman for America's Health Insurance Plans, a trade group representing insurers, said members had worked hard in the past year to make health savings accounts and the high-deductible plans more accessible. He said about 30 percent of those purchasing the products were previously uninsured.
"That leads us to one conclusion, which is that this product will appeal to certain types of consumers," Ghose said. "And what's important in the long run is to have as much choice as possible so that consumers and their employers can make the coverage decision that suits them best."
Visit us at http://www.health--savings--accounts.com to learn more about Health Savings Accounts and how they can benefit you.
Posted by Wiley Long at 11:46 AM | Comments (0)