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February 16, 2012
Health Savings Accounts Favored By Employers And Employees
With the skyrocketing costs of health care, businesses are trading their PPO (Preferred Provider Organization) plans in for Health Savings Accounts. This move is strongly favored by employees because it can mean quality healthcare coverage and tax deductions.
While the tax deduction for Health Savings Account contributions can be up to $3,050 for individuals and $6,150 for families in 2012, Golden Rule points out that HSA advantages go far beyond tax deductions.
Health Savings Accounts' Two Main Advantages:
For Golden Rule, Health Savings Accounts have two advantages. They are tax-privileged and they allow you to get lower health insurance premiums with a qualified high-deductible health plan. Plus, preventive care is 100-percent covered in plans obtained post health care reform through in-network providers.
One of the best things about having an HSA plan is that it allows you to keep more of your money in your own account than in Uncle Sam’s or in your insurer’s.
According to Richard A. Collins, CEO of UnitedHealthcare’s Golden Rule Insurance Company, Health Savings Accounts make financial sense fοr many families because thеу mаkе it possible to save tax free fοr medical expenses. He also says that since you - not your employer - own your HSA, you have the power to do what you want with the money when you want to use it.
Research conducted by RAND Health Insurance Experiment revealed that Health Savings Accounts change the way people handle their medical care. The consumer choice aspect of HSA plans can save money on both ends of the healthcare spectrum.
The study showed that HSA plan holders were able to cut their healthcare expenses, even when they seek medical treatment. This could be because consumers make better decisions regarding their healthcare. The study also revealed that 65 percent of the decrease in healthcare costs was from consumers “initiating care less often.”
Amelia Haviland, a RAND statistician, says that unlike earlier time periods, it seems that today’s patrons саn shape thе level аnԁ mix of medical services provided when they receive medical care. At nominal amounts, part of thе savings reflects choices fοr less-costly treatments, nοt јυѕt a reduction іn thе number of services.
According to Haviland, a couple of things help reduce rising healthcare costs. These are less use of name-brand medications and specialists. With Health Savings Accounts, the solution to control high healthcare costs might just be right under your nose.
Posted by Wiley Long at February 16, 2012 11:25 AM