Employers continue to feel the squeeze from swollen health care costs. Are HSAs the new treatment?

The continuing rise in the costs for employer based health insurance is bringing new attention to Health Savings Accounts or HSAs


HSAs are increasingly in popularity due to a feature, in which dollars are allocated to employees, who can roll the accounts over every year and take them with them when they leave. I have a host of clients that uses HRAs, and a host of clients that uses HSAs,” Bradley said. “Some companies prefer HRAs because they are not as cumbersome to set up, and they retain the funds, rather than returning them to employees.” But others favor the HSA for the effect it has on employees. “It encourages them to become better consumers of health care, since they’re spending their own money,” Bradley said. For instance, “if the money is coming out of their own pocket, consumers might ask doctors if they really need all three tests, or if they really need 100 pills instead of 50,” said Lou Basso, president of The Alcott Group, a Farmingdale-based professional employer organization and provider of human resources services.

For more on this topic, click the link below

http://libn.com/blog/2008/11/21/employers-hurt-by-swollen-health-care-costs/


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