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March 29, 2009
Why Health Savings Accounts Are Catching On
Tracey Jihad has five kids and a chronic illness, reason enough to worry about rising health care costs. So she was apprehensive when her employer announced that it was starting the transition to a new kind of high-deductible health insurance with Health Savings Accounts.
Four years later, Jihad is sold on the way the new coverage lets her control health-care decisions, and hold down costs for herself, her coworkers and her employer. "Especially with the economy, this shows that we can be proactive about reducing health care costs," said Jihad.
Tracey Jihad is a medical records data coordinator for LifeSource, a St. Paul-based nonprofit that coordinates organ donations in the Upper Midwest. What sold her on the new Health Savings Account coverage was the careful way that LifeSource helped employees through the transition. The organization didn't just shift medical costs to them, it showed how they could all save money. It didn't just dump medical decisions in their laps, it taught them how to make smart choices.
The rapid growth of high-deductible health plans has thrown a spotlight on the way employers make what can be a tricky transition. HSA plans require people to pay a larger share of medical costs out of pocket, but let them set aside pretax money in their Health Savings Accounts to cover some of the costs.
Advocates hope HSA plans will help rein in health care costs by encouraging consumers to use medical services more prudently. But many experts worry that consumers will scrimp on needed care or valuable preventive services, saving money now but driving up health costs in the long run.
Learn more about Health Savings Accounts at HSA for America.
Posted by Wiley Long at March 29, 2009 04:03 PM