Knockin' Wood: The Benefits of Health Savings Accounts - HSA's
02/03/09 - InsureBlog by Henry Stern
The Urban Institute doesn't like free market solutions to health care and insurance issues, so they decided to pick on the one product that is the most useful in reducing costs and insuring more people: consumer driven health care plans and HSA's. In reality:
- HSA's are attractive to people of all incomes.
- Those who need usual health care services benefit from these plans, which avoid costly "extras".
- High deductible HSA plans have lower premiums than expensive plans with lower initial co-pays. Since the plans have higher deductibles, it seems more likely that those with more health problems (up to a point, of course) will be more likely to make it through underwriting.
- 6+ million Americans are enrolled in HSA-eligible health plans. Their popularity is growing. Patients determine how much of their money to spend today, or save for tomorrow, for health-care expenses. HSAs allow patients to make prudent decisions for themselves.