August 18, 2006

     Consumer-driven health care received another boost this week, as America's Health Insurance Plans (AHIP) released an overview of preliminary research in to health savings accounts and high-deductible health plans.  Devon Herrick, senior fellow with the National Center for Policy Analysis (NCPA), noted the report gave a concise view of the success of consumer-driven health care.

     "The report is a straight-forward accounting of the strides made into changing our health care system," said Herrick. "HSAs and high-deductible health plans are providing effective alternatives for patients who want more control over their health care decisions."         

     The report shows a significant increase in participation in high-deductible plans over the past year. Additionally, the research demonstrates these plans have saved 20 percent to 30 percent in premium costs over traditional health plans.

     Age and income have proven to be less of a deciding factor than critics would like to believe, since the age demographics are almost evenly split between the under-40 and over-40. As for income levels, studies cited in the report indicate a growing number of enrollees with moderate incomes (under $50,000/year).

     Other findings summarized in the report include: 

• Growth in HSA enrollment is particularly strong in the large-group market; 8 percent of companies with 10,000 to 19,999 workers offered HSA-qualified plans in 2005, compared with 1 percent in 2004.
• Twenty-three percent of new health insurance purchases in the individual market were for HSA-qualified plans;
• 29% of enrollees in HSA-qualified plans were age 18-34, compared to 27 percent for non-consumer-directed health plans (CDHP). 46% of enrollees in HSA-qualified plans were age 45 or older compared to 49 percent for non-CDHPs.
• 77 percent of individuals with HSA-qualified plan coverage and 77 percent of people with non-HSA plan coverage reported their health status as very good/good.
• 31 percent of individuals purchasing HSA-qualified plans were previously uninsured. 33 percent of policies in the small-group market were sold to firms that previously did not offer health care coverage.

     "These outstanding results were predicted by supporters of consumer driven health care years ago," continued Herrick. "HSA critics will now have to think up new arguments because their old dire prognostications have not come to pass."

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