Have a stake in the system with health savings accounts

Although we might be grateful for whatever is being given to us, we will have a greater sense of responsibility if there is ownership that comes along with it.  For instance, health care expenses in the US should also come with ownership.  This would be the key to the healthcare cost crisis in America.  Most people in the US remain detached to the actual cost of healthcare services.  There are no rewards that are offered for making better choices with regard to the well-being of individuals or the costs that are incurred.  This needs to change immediately.

At least 48% of the population in Maine is covered by the health insurance by their employers.  Normally the employee contributes around 30% of the health insurance premium on a conventional health plan.  However, there are better ways to provide cover for the employees and employers must consider the health savings account as it provides a real stake in the system along with the savings it yields.

This health care savings account is going to change the face of health insurance.  Here the policy holders will have a financial incentive that is more direct and this will aid in changing their behavior as it makes them more aware of healthy living.

This is how it works, to put it more simply.  In a conventional health insurance plan it would cost $6,000 to cover one individual.   This amount is paid directly to the insurance company while insuring the employee and providing health services.

But in the health savings account, the employer does purchase an insurance policy that is less expensive where an employee is covered for health care services exceeding $3,000.  Then the employees put the $1,500 in the HSA checking account while paying for the initial $1,500 of health services.

The unspent money just remains in the account.  However, if the employee spends in excess of $1,500 then the employer shells out the additional $1,500 via the health reimbursement account or HRA.  If the employer and employee have spent more than $3,000 together then the insurance provider picks up the tab.

In Maine, the average healthcare cost annually is around $2,500 and hence the employer will be able to save at least $500 per person.  Employees who might have an annual expense of $300 for a physical will get to keep the $1,200 in their health savings account and carry it forward to the next year’s healthcare costs that would be allotted.