Monday, July 31, 2006
Can HSA's work?
A recent study at Health Affairs is making waves. According to the study HSA's work very well at reducing expenses for the very healthy and the very sick, but actually increase costs for larger middle ground. From MSNBC's analysis:
So can the healthcare industry be reformed to bring down costs for everyone? The study's thoughts are to add more "bite" to HSA, either by increasing cost-sharing or adding more coinsurance. However, that would put consumers at more financial risk.It's very rare that you can have your cake and eat it too. The paper is available here for a few bucks.
"It's a trade-off between more cost-sharing and less insurance protection," said Remler. The more you move away from insurance funding, the more vulnerable people are because they'll be spending more out-of-pocket costs. That means less protection for people who get unlucky and end up having serious illnesses."