Friday, October 29, 2004
USA Today offers cautious endorsement of HSAs
[Editorial, "A way to curb health costs," USA Today, 25 October 2004.]
Despite citing evidence that addresses the very concerns they raise, the editors at USA Today choose to hedge their bets in this editorial by stopping short of fully embracing health savings accounts. Nonetheless, they hardly condemn the option, either, and seem to display an understanding of the problem HSAs are meant to overcome:
"Is it covered?" That's what many patients ask when considering a medical service. If health insurance covers most of the tab, they have little incentive to shop for a better price, take cheaper generic drugs or avoid unnecessary doctor visits, since their out-of-pocket expense may be just a small co-payment.
That attitude drives up health care expenses. Third-party payment divorces consumers from the true costs of their care, resulting in the ever-increasing premium hikes that have prompted many businesses to scale back or drop coverage.
As employees renew their insurance coverage this fall, many will have a new — though controversial — option: a tax-free health savings account (HSA). Think of it as a 401(k) plan for health care.
While HSAs are no cure-all for the crisis in health care, they could make consumers more cost-conscious and reduce premiums, making insurance more affordable for the 45 million people who lack coverage.
While the potential drawbacks require monitoring, HSAs could ease the two biggest problems in health care: soaring costs and growing ranks of uninsured.
Few other innovative options are available to tackle the nation's health care woes. HSAs are no panacea, but if they offer some relief, they're an experiment worth following.
[Editorial, "A way to curb health costs," USA Today, 25 October 2004.]
Despite citing evidence that addresses the very concerns they raise, the editors at USA Today choose to hedge their bets in this editorial by stopping short of fully embracing health savings accounts. Nonetheless, they hardly condemn the option, either, and seem to display an understanding of the problem HSAs are meant to overcome:
"Is it covered?" That's what many patients ask when considering a medical service. If health insurance covers most of the tab, they have little incentive to shop for a better price, take cheaper generic drugs or avoid unnecessary doctor visits, since their out-of-pocket expense may be just a small co-payment.
That attitude drives up health care expenses. Third-party payment divorces consumers from the true costs of their care, resulting in the ever-increasing premium hikes that have prompted many businesses to scale back or drop coverage.
As employees renew their insurance coverage this fall, many will have a new — though controversial — option: a tax-free health savings account (HSA). Think of it as a 401(k) plan for health care.
While HSAs are no cure-all for the crisis in health care, they could make consumers more cost-conscious and reduce premiums, making insurance more affordable for the 45 million people who lack coverage.
While the potential drawbacks require monitoring, HSAs could ease the two biggest problems in health care: soaring costs and growing ranks of uninsured.
Few other innovative options are available to tackle the nation's health care woes. HSAs are no panacea, but if they offer some relief, they're an experiment worth following.
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