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February 07, 2007
Congress Did Good With Health Savings Accounts
This time three years ago, insurance companies began offering Americans a new type of medical coverage: Health Savings Accounts. But the anniversary is muted. A slew of reports have been critical, dismissing Health Savings Accounts as unpopular and harmful; and with the Democrats in control of Congress, Washington's enthusiasm for the concept has cooled.
Nevertheless, the Republicans should take credit where credit is due. The White House ought to build on the growing success of Health Savings Accounts, which are integral to the president's vision of "affordable and available" health care.
An executive of an upstart airline recently described her company as having three 757s, more than 200 employees, and one big headache: rising health-care costs. Thus, they made the switch to Health Savings Accounts in 2006, and premiums rose just 5%, compared with a national average of over 8%. Such successes aren't making the news, but overwhelmingly negative stories are. A much reported Commonwealth Fund survey, for example, concluded that enrollment in HSA plans is stagnant, people are grossly dissatisfied, and care is delayed. But the report was flawed on its face: For one, it was unrepresentative, drawn from a pool of "Internet users who have agreed to participate in research surveys."
Here's the untold story: Despite recent entry into the market, these plans are gaining popularity. Drawing on information from major insurance carriers, William Boyles, publisher of the Consumer Driven Market Report, estimates that enrollment in HSA-type plans more than doubled since January 2006, to 13.4 million Americans. The estimate is plausible, as last year twice as many employers offered this coverage than in 2005, and the number of financial institutions supporting HSAs tripled. Early data suggest good results.
Looking back on GOP-era Capitol Hill, welfare reform stands out as the greatest achievement, but Health Savings Accounts should be considered a close second. Except that Health Savings Accounts will eventually be universal, so they are far greater.
Learn more about what a Health Savings Account can do for you at: http://www.health--savings--accounts.com
Posted by Wiley Long at February 7, 2007 11:21 AM