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Patient
Health and Health Savings Accounts
National
Center for Policy Analysis
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Health
savings accounts (HSAs) are turning patients into consumers
by replacing one-size-fits-all insurance plans with individually
owned tax-exempt savings accounts. With HSAs, more people
can afford to be insured and portable private savings accounts
lower costs and encourage preventive care, says Investor's
Business Daily (IBD).
HSAs became
available in December 2003 as part of a Medicare reform bill.
So far, the results are encouraging:
- One-third
of HSA purchasers were previously uninsured.
- About
70 percent paid less than $100 a month for coverage.
- High-deductible
policies are 15 to 40 percent less expensive than comprehensive
policies and HSA savings greatly exceed deductibles.
HSAs handle
routine medical expenses and allow patients to avoid dealing
with insurance company and HMO bureaucracies. HSAs can
also be used towards drugs, dental care, and eyeglasses.
Patients are able to seek out the best service at the lowest
cost since there are no restrictions on choices for doctors,
specialists, hospitals or tests.
When paired
with a high-deductible catastrophic insurance policy, HSAs
lower overall costs and increase overall care, says IBD.
If money is left over at the end of the year, it simply accumulates
in HSA and earns interest. By creating a nest egg of
savings, people are more prepared for future health expenses,
from major illnesses and long-term care to paying insurance
premiums during job transitions.
Source:
Editorial, “Patients Should Also Be Consumers,”
Investor’s Business Daily, February 8, 2005.
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