Tuesday, August 26, 2008

1 in 9 Privately Insured Have an HSA

According to a new survey by United Benefit Advisors Inc, an employee benefit advisory company, enrollment in Health Savings Accounts (HSAs) has almost doubled in the past year. Now 11% of those privately insured are enrolled in HSAs compared to 6% last year. HSA-compatible plans now account for 13% of all health plans offered by employers.

A Health Savings Account ties a savings account with a low premium, high deductible health plan. That means that the individual, not the insurance company, is controlling the first few thousand spentin health care consumption. Typically, after a $2,500-$3,000 deductible is met, the insurance company pays 100% of health care costs.

HSAs encourage the individual to take ownership of their own health, focus on preventative care, make good health choices and to be smart price and quality shoppers when using health care.

(Note: To learn more, read this overview of HSAs.)