| More and more people now have the opportunity | | | | important to note, however, that amounts |
| to choose Health Savings Accounts (HSAs) over | | | | withdrawn prior to age 65 are subject to penalties |
| other, more traditional, health insurance coverage | | | | and taxes. |
| - more companies and financial institutions offer | | | | Giving the individual more consumer power when |
| this option than ever before. For the healthcare | | | | making healthcare decisions not only helps you |
| consumer, this is good news. When the | | | | and your family save money, but also creates an |
| community as a whole is given more choice when | | | | environment in which healthcare costs in general |
| it comes to healthcare options, everyone benefits. | | | | become more reasonably priced. Essentially, the |
| HSAs let you decide how to manage your own | | | | price of healthcare is so high because free market |
| medical needs and work out a financial plan that | | | | forces have little sway in the realm of healthcare |
| works best for your specific circumstances. | | | | products and services. Insurance coverage causes |
| An added advantage of Health Savings Accounts | | | | a disconnection between the consumer and the |
| is the prospect of lowering the nation's rising | | | | item purchased. When you visit the doctor or |
| healthcare costs, and making the price of medical | | | | purchase a prescription from the pharmacist, you |
| care more affordable for everyone. But how can | | | | don't know the real price tag. All you see is your |
| revamping the current health insurance system | | | | insurance payment and the price you pay at the |
| affect healthcare from a financial standpoint? | | | | cash register, after your insurance company pays |
| More to the point, how can a different kind of | | | | the balance. |
| health insurance make it easier for most people | | | | This lack of price transparency has led to less |
| to pay for required medical expenses? | | | | competition within the marketplace. People have |
| In 2003 the Medicare Modernization Act | | | | traditionally chosen their doctors, health products, |
| introduced the concept of HSAs to the American | | | | and other medical items based on location, |
| public for the first time. A Health Savings Account | | | | convenience, or other factors not related to price. |
| is meant to encourage people to invest in their | | | | When people have the choice to compare |
| own healthcare through personal savings, and | | | | different health care providers based on quality of |
| reduce health care costs at the same time; a | | | | service and price, soon overpriced healthcare will |
| revolutionary idea that has the potential to be the | | | | become a thing of the past. People will shop |
| starting point for positive changes in healthcare. | | | | around and force providers to price healthcare |
| Health Savings Accounts have sparked a lot of | | | | more competitively. |
| debate amongst those who believe in the idea | | | | As more and more people turn to Health Savings |
| and those who are wary of its ability to change | | | | Accounts, medical providers will feel the pressure |
| the face of healthcare as we know it. | | | | to post their prices and compete for the |
| When you get down to the fundamentals, HSAs | | | | consumer's business. Armed with the knowledge |
| are truly designed to improve healthcare and | | | | of what healthcare actually costs, individuals and |
| make it accessible to the vast majority of people. | | | | families will be less willing to overuse the system, |
| For the individual, HSAs make it easier to pay for | | | | which also drives up prices. (When healthcare |
| medical expenses when they arise. Coupled with a | | | | appears to cost little or nothing, most people are |
| high-deductible health insurance policy, a Health | | | | prone to make use of services even though it |
| Savings Account allows you to save pre-tax | | | | may be unnecessary). |
| money and earn interest tax-free. This allows | | | | At the same time, HSAs naturally promote the |
| you to have money set aside to cover a whole | | | | use of preventive care. When people understand |
| host of medical bills, including items that aren't | | | | the true costs associated with healthcare, they |
| necessarily covered by traditional insurance plans, | | | | will be willing to pay a little more up front to keep |
| such as dental expenses or alternative | | | | their engine running smoothly rather than pay a |
| treatments. Individuals and employers can deposit | | | | lot more at a later date to fix a problem they |
| up to $2700 per person and up to $5450 for a | | | | could have avoided. |
| family, and any time you need to withdraw any | | | | Health Savings Accounts have also put affordable |
| amount to pay for qualified healthcare costs, you | | | | healthcare within reach for more people, who |
| can do so tax-free. In addition, premiums for | | | | were previously paying medical expenses |
| high-deductible insurance policies can be as little as | | | | out-of-pocket due to inadequate or non-existent |
| half the amount of traditional PPO policies. | | | | insurance coverage. The low premiums of a |
| And because a Health Savings Account is tied to | | | | high-deductible HSA plan together with the option |
| an insurance policy, more expensive treatments | | | | of putting your money in a savings account that |
| are covered, usually 100%, after you've met your | | | | earns interest has already encouraged large |
| deductible. When you turn 65, any savings | | | | numbers of people who previously went without |
| remaining in the account can be withdrawn | | | | coverage to purchase a health insurance plan. |
| tax-free to be used for medical expenses you | | | | Only time will tell whether or not Health Savings |
| incur in your senior years. In addition, the savings | | | | Accounts can drive down skyrocketing healthcare |
| you accumulate in a HSA work like a retirement | | | | costs, but the system created by such accounts, |
| fund. The money grows tax-deferred like an IRA, | | | | which affords the individual more freedom to |
| and you can withdraw the money after age 65 to | | | | control his or her own financial and medical |
| pay for non-medical expenses without penalty, | | | | destiny, bodes well for the future of healthcare in |
| although you will be required to pay taxes. It is | | | | America. |