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January 18, 2012
Why Health Savings Accounts Are On The Rise
We have seen a constant increase in the number of Health Savings Accounts because they create a win-win situation for employees and employers. Two studies were conducted to show you why enrollment in HSA plans continues to grow.
Buck Consultants conducted a survey that revealed that Health Savings Accounts are not only saving employers and consumers money, but are also helping employees (and retirees) make better decisions about their healthcare. Employers said that the cost of providing HSA high-deductible health plans is considerably less than that of providing a standard health plan.
In a similar study, Mercer reported that due to the rising cost of healthcare plans per employee, employers are trying to keep costs down by offering HSA plans and Health Reimbursement Arrangements. Because of the high deductible, HSA plans cost around 20 percent less per employee than other options.
You can open an HSA as long as you have a qualified high-deductible health plan. You won't have a deductible on recommended preventive care services, like annual exams, vaccinations, checking for high blood pressure, etc. If you need other types of health care that aren't covered, you can use funds from your HSA to pay for it.
Experts recommend starting with a deductible you could cover until you have built up your Health Savings Account. With more HSA funds as a backup, you can safely move to health insurance with a higher deductible, get lower premiums and invest the savings back into your HSA.
Posted by Wiley Long at January 18, 2012 11:24 AM