August 20, 2007

Enrollment in health insurance plans with savings accounts has increased steadily since they became available in 2004, but 2008 could be their breakout year, according to health care consultants.

Consider:

• Consultants predict an increase of about 4 million health savings accounts, which would put the total number of HSAs at about 10 million.
• The surge is coming through mass enrollment of employees at companies with thousands of workers.
• Until now, smaller companies were more apt to offer health insurance plans that come with HSAs.

The main goal for employers offering savings accounts is to help curb the rising cost of health care in the United States. Employers are able to save money by offering the high-deductible health insurance plan, which comes with lower premiums.

Aetna, one of the largest health insurers in the country, conducted a survey last year that showed employers that offer HSA plans experience a 6 percent increase in their heath care costs.  That is a 25 percent decline in overall health care costs, which increase at about 8 percent a year.

Source: Gregory Lopes, "Health plans offer investment," Washington Times, August 20, 2007.

For text: http://washingtontimes.com/article/20070820/BUSINESS/108200017/1006

A Brief History of Health Savings Accounts: http://www.ncpa.org/pub/ba/ba481/

NCPA health experts are available to discuss Health Savings Accounts and health care reform.

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