Q:
I read that employers who moved to health
savings account plans are reporting only about 10% net savings
because the insurance is so expensive?
A:
Yes this
seems to be true partly because of the insurance restrictions but
also partly because employers are using these plans inefficiently.
HSAs are not appropriate for all employees in most businesses but a
Health Reimbursement Arrangement (HRAs) is always a good idea when
an employer provides health benefits to employees.
Virtually
all of the nation's largest employers offer HSAs as an option only,
and they are offered through an HRA.
This boosts overall
savings to about 17%, according to national surveys.
HSAs require a specific
insurance that is not available at an attractive price to everyone.
That simply means that HSAs do not work for everyone.
HRAs do
not require any specific insurance and do ensure savings for all
employees.
Keep in mind that
maximizing a company's savings on insurance is a separate issue from
maximizing savings on out-of-pocket heath costs and that the two
goals should be managed separately.
Finally, keep in mind
that all types of consumer-driven health plans, including HSAs and
HRAs, do result improved satisfaction with the quality of health
care.
It may be difficult to put a dollar value on this
improvement in employee satisfaction but still should be considered
when evaluating health plan choices.
Freedom Benefits offers
a service for maximizing savings on both types of health plans for a
single flat fee of $150.
See
www.FreedomBenefits.org
for more information.
Other Resources:
www.FreedomBenefits.org
copyright 2009 by Tony Novak
All rights reserved.
