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October 29, 2007
Health Savings Account Consumers Could Be Saving on Health Costs
Results from a study released by HealthPartners shows that people using Health Savings Accounts and Health Reimbursement Accounts could be saving significant money on medical costs.
The company's findings indicate health care costs were 4.4 percent lower for members who used consumer directed health plans (CDHP), even after adjusting for differences in members' health status.
The study also found that CDHP members were significantly healthier and were expected to use 28 percent fewer health care services than those enrolled in traditional plans. CDHP members were also younger.
"We also wanted to know how CDHPs impact members to get proper health care," said Andrea Walsh, executive vice president of HealthPartners. "It turned out people were getting preventative visits, taking their medicine and getting treatment for illnesses such as diabetes."
The study compared 140,000 continuously enrolled members in traditional health plans with 5,000 members in account-based plans such as Health Savings Accounts and Health Reimbursement Arrangements.
Participants of CDHPs were also more likely to use HealthPartners' Web site to calculate medical costs, compare quality care information and search lists of facilities that offer the most cost effective services for various procedures.
Eileen Smith, communications director at the Minnesota Council on Health Plans, said studies looking at CDHP provide a short-term glimpse at the product because people just recently started using the plans. But it is important, she said, because more employers are offering it and employees are choosing CDHPs over traditional health plans. According to its 2006 annual industry overview, 243,205 people in Minnesota who are insured through the council's members used health savings and health reimbursement accounts, compared with only 85,960 in 2004.
"Employers are scrambling to keep coverage for employees and for some [health savings and health reimbursement accounts] is the best option," Smith said.
Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com
Posted by Wiley Long at October 29, 2007 07:34 AM