Yesterday, I talked about proponents of HSAs having empirical evidence that the plan works. A recent article in BusinessWeek weighed out some pros and cons of the program. The pros, as usual, look really good. Even more encouraging is the fact that most of the cons can be managed. The real point of this is that if consumers are given real, relevent information and decide to take control and responsibility of their own health care – and opportunities to take part in affordable preventative care practices, the HSA/HDHP combo will significantly decrease not only the costs of health care, but also the NEED for it. While a traditional health insurance plan encourages treatment, the most powerful function of an HSA is to encourge prevention.
You can see more of this in the original article – I have quoted some high points here:
The only way to truly reduce health-care costs is to put as many health-care dollars in consumers’ pockets as possible through consumer-driven health plans (CDHPs), aka high-deductible health plans (HDHPs).
The empirical evidence of this is overwhelming: According to a study by the American Academy of Actuaries, premium costs for CDHPs have trended as much as 40% lower than managed-care insurance, and multiyear premium savings reached $21 million per 10,000 employees, according to a study conducted by Aetna (AET). These plans, utilizing a high-deductible health plan coupled with a tax-deductible health savings account (HSA), are reengaging consumers in managing their health care, with impressive results. Consumers with CDHPs are increasing their use of generic drugs, reducing emergency room visits, and increasing participation in wellness programs.
The managed-care model disconnects consumers from understanding what their health-care costs really are. Insulated from the actual price of care through co-pays and co-insurance, they have no way of determining the real market cost of the services they need. Using Web-based tools, people are seeking information and shopping for their care like never before. With this level of engagement, consumers are directly involved in their health-care decisions, and in reducing their overall health-care costs.
CDHPs turn patients into true consumers of health care and health insurance, in the same way they’re consumers of car insurance. This is the most effective way to reduce health-care costs.
