Benefits Corner: "High Deductible Health Plans with Health Savings Accounts"

By Amy Christieson, Director of Benefit Solutions

You've heard the buzz in the employee benefits marketplace, High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs).  But are they a viable option for your organization?  The US Department of Treasury is estimating that 40-45 million Americans will have medical coverage through HDHP/HSA plans by the year 2010.  With continued, year after year, double-digit increases both employers and employees are asking for relief!  High Deductible Health Plans provide significant savings on health insurance premiums while Health Savings Accounts provide a vehicle to take pre-tax dollars to pay medical expenses on a tax free basis.  These types of plans are especially attractive to small companies who are either unable to offer medical benefits due to cost or their costs have risen dramatically over recent years.

How do HDHPs and HSAs work?  A High Deductible Health Plan is designed to cover you for catastrophic medical services.  HDHPs have deductibles that range from ,100 to ,500 for single coverage and ,200 to ,000 for family coverage.  Because of the deductible on the front end, the premium is significantly less than a low co-pay health plan and may allow employers to absorb 100% of the cost of the health insurance premium or even help fund a portion of the savings account on behalf of their employee.  Health Savings Accounts belong to the employee, savings deposits grow tax free and the deposits remain in the account from plan year to plan year.  There are no "use it or lose it" limitations attached to the HSA plan.

Industry statistics show dramatic results with Consumer Driven Healthcare.  Employees are becoming educated consumers by inquiring about their medical care needs and cost of related services.  Did you know that Consumer Driven Health Plan members are 20% more likely to engage in wellness programs such as smoking cessation versus 6% not enrolled in Consumer Driven Health Plans?  Insurance carriers see the need to provide resources to their insurance subscribers by providing online tools for subscribers to not only research provider networks, but to shop for services and pharmaceuticals.  And with preventative services covered in full (no co-pay, co-insurance and not subject to the deductible) your plan provides the platform for a healthier employee population and earlier detection/intervention when needed.    Not only will this have an impact on the employer and employee level from a premium perspective, it will have an impact on healthcare globally. Could, HDHP's and HSA's  reverse the trend? 

Empower, Educate and Engage your employees in the future of their healthcare.  Consider a High Deductible Health Plan with a Health Savings Account.

For more information please contact Benefit Solutions, a division of the Amherst Chamber of Commerce, at  (716) 250-0991.