Thursday, 28 September 2006
The Verdict On HSAs
In the (almost) 3 years since Health Savings Accounts became law, there’s been a lot of hype and hot air in the press. Plenty of people have jumped on the HSA bandwagon, claiming that the accounts will revolutionize the American healthcare system. And just as many maintain that they will ruin healthcare by giving employers even more incentive to stop offering coverage through work.
But what about the people who actually use HSAs? Are the accounts working as promised? Wouldn’t it be great if someone if someone actually asked them?
Well, someone did. The Blue Cross and Blue Shield Association has been conducting ongoing research into the subjects of health savings accounts and consumer-driven plans.
The result? 85% of people who participated in the study reported that HSAs “meet or exceed” their expectations about controlling healthcare costs. 46% chose to buy an HSA because it was a more affordable healthcare option. And 38% are using it as a way to save for their long-term healthcare needs.
Who’s buying HSAs? Mainly people between the ages of 25 – 54. And despite criticisms from some that HSAs are nothing more than a tax-shelter for the rich, people from a broad spectrum of income and education have opened the accounts.
Is this the final verdict on HSAs? Hardly. The debate isn’t likely to be over anytime soon. But if these numbers are indication, HSAs have a bright future.
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