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:6/27/2016)... (PRWEB) , ... June 27, 2016 , ... ... for mental health professionals, announced today its affiliation with Tennessee Counseling Association. ... solutions to the network of the Tennessee Counseling Association, adding exclusive benefits and ...
(Date:6/26/2016)... ... June 26, 2016 , ... On June 10-11, 2016, A ... 2016 Cereal Festival and World’s Longest Breakfast Table in Battle Creek, MI, where the ... history as home to some of the world’s leading providers of cereal and other ...
(Date:6/25/2016)... ... June 25, 2016 , ... Experts from the American Institutes ... Research Meeting June 26-28, 2016, at the Hynes Convention Center in Boston. , ... advance care planning, healthcare costs and patient and family engagement. , AIR researchers ...
(Date:6/25/2016)... , ... June 25, 2016 , ... As a lifelong ... Cum Laude and his M.D from the David Geffen School of Medicine at UCLA. ... to Los Angeles to complete his fellowship in hematology/oncology at the UCLA-Olive View-Cedars Sinai ...
(Date:6/24/2016)... ... June 24, 2016 , ... Those who have experienced ... feelings, many turn to unhealthy avenues, such as drug or alcohol abuse, as a ... has released tools for healthy coping following a traumatic event. , Trauma sufferers tend ...
Breaking Medicine News(10 mins):
(Date:6/26/2016)... Story Highlights: ... the health care industry is causing providers to review ... Deloitte offers a suite of solutions for health care ... cost optimization: labor resource analysis, revenue cycle optimization and ... outcomes and better economics ...
(Date:6/24/2016)... SOUTH SAN FRANCISCO, Calif. , June 24, ... GBT ), a biopharmaceutical company developing novel ... with significant unmet needs, today announced the closing ... 6,400,000 shares of common stock, at the public ... the shares in the offering were offered by ...
(Date:6/24/2016)... 24, 2016 Research and ... "Structural Electronics 2015-2025: Applications, Technologies, Forecasts" report ... In-Mold Electronics, Smart Skin, Structural Health Monitoring, ... Structural electronics involves electronic and/or electrical components ... replacing dumb structures such as vehicle bodies or ...
Breaking Medicine Technology: