HSAs: Consumerism at its Finest
Health Savings Accounts (HSAs) have been all the hype in the Employee Benefits world for a while now. And yet, only half of employers include this option in their health insurance portfolio. Yes, these programs can be perceived as a high out-of-pocket option due to the deductible. But, does it really end up being a higher cost option?
Let's break it down. Generally, the premium for an HSA plan is somewhere between 15-20% lower than your standard PPO plan. Much of the time, the premium difference alone will help fund the deductible, so in reality, there isn't much of a cost difference. Not to mention, all preventative care services are covered at 100 percent. Employees often forget that their copays can add up over the course of a year and they sometimes will still have deductible costs and co-insurance to pay after their doctor visits or procedures. Plus many employers choose to contribute to the HSA, putting more money in the employees’ pocket at a tax savings to help them pay for related qualified expenses.
So, what really drives cost savings? When employees participate in an HSA, statistics show that they make different decisions about their health care. They take control – consumerism at its finest! When employees have skin in the game, they generally will do a few things differently. They research things more, ask more questions and make decisions based on need versus want. All of these things lead to better educated, more informed health care decisions.
So, the next time your doctor writes you a prescription for a brand name high blood pressure medicine, why not ask her if there is a generic available? This alone can save you anywhere from $25-$150. Multiply that times 12. That’s some pretty significant annual savings and a great addition to help your HSA grow for today, tomorrow and into your future!
Check out our Total Cost of Benefits per Employee calculator to see how a lower cost option for medical health insurance can impact your bottom line.
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