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January 10, 2012
Can Health Savings Accounts Help Small Businesses Fight Health Care Costs?
According to a recent study commissioned by HSA provider ACS and conducted by Bucks Consultants, more small business owners and employees are turning to Health Savings Accounts as a low-cost healthcare option.
Health Savings Accounts (HSA) are owned by the employee, rather than the employer, even if the employer funds that HSA. These funds can be used to pay for qualified health care expenses, or kept for retirement.
Marcia Wagner, principal and founder of the Wagner Law Group, said: “Health Savings Accounts have gained popularity among small business owners for one simple reason: efficiency.” She added that HSA plans and Health Reimbursement Arrangements give people some "skin in the game." They have less to lose if they shop for coverage and actively manage as much of their own healthcare decisions as possible.
Close to 80 percent of polled small business owners reported that a high-deductible health plan that can work with a HSA is the key in controlling healthcare costs. In addition, 56 percent of HSA holders think that their HSA-qualified plan is more affordable than most other kinds of health plans.
Having an HSA plan can create real cost savings for small businesses particularly when employees are motivated to shop for the best health insurance.
Posted by Wiley Long at January 10, 2012 01:05 PM