Massive HSA analysis reveals true impact: 9 stats you should see
November 21, 2011 by Christian SchappelPosted in: Health care, In this week's e-newsletter - benefits, Latest News & Views, Pay and benefits
There are two reasons an employer would want to enroll workers into a high-deductible health plan (HDHP) with a health savings account (HSA): Lower costs and get employees to become smarter healthcare consumers. And new research shows those two goals are being met.
The concept behind HDHPs is simple: In exchange for lower premiums, enrollees pay more out of pocket for the health services they use. And when people spend more of their own money on health care, they’ll shop around for lower prices, cut back on care that isn’t medically necessary and take better care of themselves.
Mission accomplished
Turns out HDHPs attached to HSAs are doing that and much more, according to one of the most expansive research projects ever conducted on the subject of HDHPs and HSAs. It was conducted by Buck Consultants and generated responses from more than 14,000 HSA account holders and 300 employers.
Responses from HDHP/HSA users:
- 56% of account holders say their HSA-qualified plan provides an affordable healthcare option
- 54% reported setting aside more money now than before they had an HSA to cover medical costs
- 31% report better healthcare planning throughout the year
- 28% are shopping for lower prescription drugs
- 18% said they are engaging in healthier lifestyle choices, and
- 18% said they are researching preventive care programs.
In addition, Buck said HDHP/HSA users believe they consume medical services at the same rate they always have but are now shopping around for care — exactly what employers hoped starting an HDHP/HSA would do.
Responses from employers:
- Providing an HSA-qualified plan is less costly than providing a standard Preferred Provider Organization (PPO) plan. The average cost to provide an HDHP/HSA is $5,469 for individual coverage and $9,909 for family coverage, compared to PPO costs of $7,158 for individual coverage and $10,691 for family coverage.
- 77% of the small employers surveyed believe that HDHP/HSA plans are key in controlling health costs, and
- 69% contribute to their employees’ HSAs (on average: $1,000 for individual coverage and $1,500 for family coverage).
Tags: Buck Consultants, HDHP, Health Savings Account, high-deductible health plan, HSA, survey
HRMorning.com delivers the latest HR news once a week to the inboxes of over 200,000 HR professionals.
follow us on Twitter
join our group on Facebook
November 21st, 2011 at 4:27 pm
Let’s see, we could continue to promote these hsa/hdhp programs which have been proven to encourage users to be better consumers and drive down costs or follow through with Obamacare which does just the opposite.
November 23rd, 2011 at 2:43 pm
One disadvantage is that consumers may tend to NOT get needed healthcare or put it off when costs are higher or when they have to shop around. This kind of response may not be a good thing as their medical symptoms/problems may become more serious when gone untreated.
November 29th, 2011 at 10:45 am
@ Don. No system is perfect and their might be a small minority of consumers that behave against prudence and common sense. Overall this is an objection that has already been studied and debunked. Participants in HDHP’s show very little to no difference in overall health when compared to participants on traditional plans. However, premium savings and the ability to drive cost down have been proven to be highly beneficial. Your argument is analogous to saying we should have $50 car insurance deductibles and required coverage for oil changes. Then more people would get the required maintenance done and prevent long term problems. The cost would sky rocket. It is simply not practical.