Navigation Links
HSA Plans Gain Popularity as Premium Costs Rise

Hewitt Data Good News for Future Cost Controls, Says NCPA's Goodman

DALLAS, Sept. 26 /PRNewswire-USNewswire/ -- About half of all employers are expected to soon offer Health Savings Account (HSA) plans to their employees. This projection offers the best hope for restraining runaway health care costs, according to John Goodman, president of the National Center for Policy Analysis (NCPA).

"The best way to control health care costs is to put patients in control of more of their health care dollars," said Goodman. "The increasing popularity of HSAs is a result of managed care's failure."

According to a report released this week by Hewitt and Associates, a global human resources company, "account-based plans are gaining traction by employers as a way to control costs." Hewitt's research found that more than 20 percent of companies offer, or plan to offer, a high-deductible health plan with an HSA by the end of this year and almost half are considering offering one at a future date. While just 3 percent of employees elected these plans last year, most companies anticipate that enrollment will grow to 20 percent in 5 years.

A major factor in the movement towards consumer-directed health care plans is the ever-increasing premium rates. While employers enjoyed a nine-year low in health care cost rate increases this year -- a 5.3 percent average increase, down from 7.9 percent in 2006 -- that is expected to change in 2008. Premiums are expected to rise by an average of 8.7 percent in 2008. For example:

-- Premiums for traditional indemnity plans increased 9.1 percent in

2007 and are expected to increase 9.0 percent in 2008;

-- Premiums for HMOs increased 8.7 percent in 2007 and are expected to

increase 9.0 in 2008;

-- Premiums for point-of-service (POS) plans increased 3.9 percent in

2007 and are expected to increase 8.5 percent in 2008;

-- Premiums for preferred provider organizations (PPOs) increased 2.4

percent in 2007 and are expected to increase 8.5 percent in 2008.

"While the movement towards HSA plans is encouraging, the real issue is much deeper than putting patients in the driver's seat," said Goodman. "We are suffering today because we systematically suppressed the market in every aspect of medical care for more than 100 years. The solution is long overdue: bring the market back to life."

SOURCE National Center for Policy Analysis
Copyright©2007 PR Newswire.
All rights reserved

Related medicine news :

1. France plans to protects its citizens from bird flu
2. MSI puts on hold plans for operations in Chennai
3. Antigenics Pharmaceuticals plans for Phase III trial of its Melanoma vaccine
4. Wockhardt Group Plans Hospital In Delhi By End-2007
5. Alberta’s New Reform Plans In Health Care Secto
6. Blue Cross Signs Up 110,000 Minnesotans For Part D Medicare Plans
7. Little Clinic LLC Plans Super Medical Clinics in Publix Super Markets
8. Medicare Drug Plans Are Onerous and Restrictive
9. Rajasthan Plans To Run Christian Institutions
10. Britains Bird Flu Contingency Plans Faces Criticism
11. Coraki Community Wants To Know About the Plans for the Campbell Hospital
Post Your Comments:
(Date:11/30/2015)... ... 2015 , ... An inventor from Charlottesville, Va., is concerned about the need ... high blood pressure due to loud noises," she said, "so I decided that there ... as well as radio waves and microwaves." , The baby BABY MUFF prevents loud ...
(Date:11/30/2015)... , ... November 30, 2015 , ... In an interview ... role as a top ophthalmologist on Long Island’s east end. During the broadcast, entitled ... in surgery and treatment of glaucoma and cataracts, and how a visit with his ...
(Date:11/30/2015)... ... 2015 , ... Since its inception, Seniors Guide has been ... living and all other retirement options. Support for issues surrounding the senior community ... top priority. , So it’s no surprise that every November, Seniors Guide ...
(Date:11/30/2015)... ... November 30, 2015 , ... ... Kreithen”), one of the leading plastic surgery practices in Florida, is proud to ... to consult for surgical innovations giant Ethicon Inc., a Johnson & Johnson Company. ...
(Date:11/30/2015)... ... November 30, 2015 , ... Sikka Software announced today ... Meeting. Their Ecosystem empowers dentists to make complex business decisions by providing the tools ... receive a free fee survey with 10 procedures customized by zip code. , ...
Breaking Medicine News(10 mins):
(Date:11/30/2015)... Sectra (STO: SECT B) ... into a multi-year agreement to provide Breast Imaging PACS ... Breast Care to increase collaboration with sub-specialists around the ... --> Sectra (STO: SECT B) ... into a multi-year agreement to provide Breast Imaging PACS ...
(Date:11/29/2015)... and NUREMBERG, Germany , ... meeting, innovation leader Ziehm Imaging invites attendees to experience ... on the market. The highlight on display is Ziehm ... flat-panel technology that provides a 16 cm edge length ... Vision RFD Hybrid Edition, the first fully motorized mobile ...
(Date:11/29/2015)... CHICAGO , Nov. 29, 2015   National ... expansion of its client base, including notable statewide ... the company,s flagship solution, ACR Select, more than ... EHR order entry workflow. ACR Select provides real-time ... a patient,s condition and has been implemented at ...
Breaking Medicine Technology: