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July 28, 2006
Start Saving with a Health Savings Accounts
Since World War II, the U.S. health care system has been built on the assumption that most employers will provide their workers with insurance. That assumption is under extreme pressure as health costs have gone up at twice the rate of inflation.
Today more and more companies are testing the waters of an approach that exposes their employees to more of the costs of health care. The theory is, if the money comes out of employees' pockets, they will use only what they need and shop for the best value. This theory works with Health Savings Accounts.
Many employers and self-employed individuals are investigating consumer-driven health care with individual health savings accounts due to the convergence of three powerful trends:
• Rapidly increasing premiums for traditional health insurance.
• A backlash by employees and providers against managed care with provider-side cost constraints.
• A rise in health care consumerism fueled by the Internet and direct-to-consumer advertising for health products and services.
Employers and self-employed individuals are exploring whether these consumer plans can contain health care costs and increase consumer choice and satisfaction concerning health care.
As more Americans discover the advantages of health savings plans and as more companies offer them, consumers will be able to affordably insure themselves. Because most consumer-driven health care plans, like health savings accounts, are portable, individuals won't necessarily have to worry about losing coverage if they change jobs, lose a job or want to start a business.
When individuals have more control over their health care spending, they become better consumers and health care costs are driven downward. The question still remains whether consumer-driven health care plans are the complete answer to our health care problems. The answer will come in time, but this is definitely a step in the right direction.
Find out how a Health Savings Account can start you on the path to finacial healthcare freedom.
Posted by Wiley Long at July 28, 2006 07:06 AM