Navigation Links
HSA Plans Gain Popularity as Premium Costs Rise
Date:9/26/2007

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:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... MIAMI, Fla. (PRWEB) , ... June 24, 2016 , ... ... Florida Trend magazine’s 2016 Legal Elite. The attorneys chosen by their peers for this ... of Florida. , Seven Greenberg Traurig Shareholders received special honors as members of this ...
(Date:6/24/2016)... , ... June 24, 2016 , ... Topical BioMedics, Inc, makers of Topricin and MyPainAway ... call for a minimum wage raise to $12 an hour by 2020 and then adjusting ... restore the lost value of the minimum wage, assure the wage floor does not erode ...
(Date:6/24/2016)... New York, NY (PRWEB) , ... June 24, ... ... lifestyle publication Haute Living, is proud to recognize Dr. Barry M. Weintraub as ... believes that “the most beautiful women in the world, and the most handsome ...
(Date:6/24/2016)... , ... June 24, 2016 , ... National recruitment firm ... life sciences executive with extensive sequencing and genomics experience, as Vice President of North ... Ms. Hill will be responsible for leading the sales team in the commercialization of ...
(Date:6/24/2016)... ... June 24, 2016 , ... Advanced Plastic Surgery Institute ... pageant as its official Medspa Sponsor. Dr. Josh Olson, a board-certified plastic surgeon, ... , Dr. Olson says the decision to support the pageant in an official ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... , June 24, 2016 According ... by Type (Standard Pen Needles, Safety Pen Needles), Needle ... GLP-1, Growth Hormone), Mode of Purchase (Retail, Non-Retail) - ... This report studies the market for the forecast period ... reach USD 2.81 Billion by 2021 from USD 1.65 ...
(Date:6/23/2016)... June 23, 2016  MedSource announced today that ... e-clinical software solution of choice.  This latest decision ... value to their clients by offering a state-of-the-art ... relationship establishes nowEDC as the EDC platform of ... full-service clients.  "nowEDC has long been a preferred ...
(Date:6/23/2016)... 2016  In a startling report released today, National Safety ... lacking a comprehensive, proven plan to eliminate prescription opioid overdoses. ... how states are tackling the worst drug crisis in recorded U.S. ... Kentucky , New Mexico , ... Of the 28 failing states, three – Michigan ...
Breaking Medicine Technology: