Proponents of consumer-driven healthcare have often touted Health Savings Accounts (HSAs) as one means of driving down healthcare costs and making patients more responsible for paying medical expenses. According to the Treasury Department, HSAs “enable [people] to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.” In some plans, people are allowed to keep money they do not spend.
According a Wall Street Journal/Harris Interactive poll, most Americans are comfortable with their current health insurance. This is because the majority are confident that their healthcare needs will be met by their current plan.
When asked whether they will enroll in a HSA, 79 percent say they have no plans to do so (see table below). However, higher income respondents are more likely to say they will.
Given this, it is not surprising that higher income individuals are more attracted to HSAs. They have the ability to pay for their care and are more willing to experiment with new forms of insurance. If you have less money or are sicker, a high deductible plan is not a good option.
Only time will tell if HSAs become more attractive. Clearly, fans of these plans will have to alleviate fears that patients will be responsible for medical bills they are unable to pay.
we just launched a WebTV series that breaks down HSAs for employers and employees:
http://www.scribemedia.org/2006/12/14/the-abcs-of-health-savings-accounts/
there is still a lot of confusion about HSAs, even among brokers and agents who sell them.
i think employers can structure them in ways that don't make employees feel like the employer is just trying to shift the burdon of healthcare onto them.
Posted by: peter | December 26, 2006 8:51 AM | Permalink to Comment