Health Savings Account Blog

"These results reinforce the revolutionary impact that the concept of consumerism is having by providing vehicles to effectively transfer knowledge and wealth to consumers so they can make wiser, more financially sound decisions about their health care," said MikeTarino, CEO of Definity Health.

The Health Savings Account study compares cost and utilization trends among approximately 50,000 individuals in high-deductible plans connected to Health Savings Accounts to data from roughly 15,000 individuals enrolled in preferred provider organizations (PPOs). The study period was between 2003 and 2005 and consisted of two sample groups drawn from the same employers. This new data reinforces the results of earlier Definity and United Healthcare studies, which have consistently shown that HSA enrollees have higher usage of preventivecare services and lower tendency to pursue discretionary acute care services.

Notable findings from the three-year study include:

-- Preventive Care - In each of the three years, up to 5 percent more of the HSA members sought preventive care services than did PPO enrollees.

-- Acute Care - Individuals enrolled in an HSA showed an annual reduction in the use of acute care services (22 percent fewer hospital admissions and 14 percent fewer emergency room visits) without adverse health effects or outcomes, while the relative utilization of those services actually increased year-over-year among PPO members.

-- Chronically Ill - HSA enrollees with a chronic illness also used acute services less (8 percent fewer hospital admissions and 12 percent fewer emergency room visits) but continued to visit their primary care physician at the same rate as chronically ill members enrolled in traditional plans.

-- Overall Costs - Costs per member decreased 3 percent to 5 percent in the HSA plans over the 2004-2005 period, as compared to their 2003 baseline level, while increasing 8 percent to 10 percent among PPO participants (after adjusting for demographics, health status, plan design impact and geography).

"While not yet conclusive, these findings support what we've seen anecdotally for the past several years: when consumers are given more information and responsibility for their health care, they will make efforts to assume more control over decision-making about the care they need in order to pursue the optimum courses of treatment. This in turn can help positively impact their health care outcomes and related costs," Tarino said.

Saving Today for Tomorrow's Expenses

Further United Healthcare research found that consumers with Health Savings Accounts are contributing to their accounts and accumulating money for future health care expenses at higher rates than had been previously anticipated.

The HSA research is based on data from 130,000 members who have opened an HSA with United Healthcare's Exante Bank, the industry's largest HSA administrator. The study found:

-- The average balance in an Exante HSA is $1,112.00 for accounts that were opened January-March 2005, illustrating that consumers are building savings for future health expenses through these accounts.

-- Approximately 60 percent of employers provide funding to their employees' HSAs, and on average employers are funding 40 percent of the employees' health insurance policy deductibles.

-- Nearly 90 percent of employees open the savings account if their employer offers to contribute funding to their HSA.

Jeff Cava, executive vice president of Human Resources and Administration for the Wendy's restaurant chain, said employees at his company are saving more than many anticipated. Wendy's began offering HSAs in 2005, and by the end of the year employees had accumulated a collective $4 million in their accounts. "We took money that used to go to a third-party payer to help pay health claims, and gave it to employees who will use it to offset their health care costs," he said. "How many other company-sponsored health plans are there that transfer wealth?"

Learn more about HSAs at: http://www.health--savings--accounts.com