HSA's

From the Houston Chronicle:

With public anxiety mounting over the cost and availability of health insurance, President Bush is promoting a free market approach designed to make consumers more responsible for their health care spending.

The centerpiece of Bush's policy is the expansion of health savings accounts, which allow individuals and families to set up tax-free accounts to pay for routine medical needs.

The White House says price increases can be blunted by moving from expensive employer-subsidized health plans to individually controlled accounts that force consumers to be more cost-conscious about health care.

"Keeping America competitive requires affordable health care," Bush told the nation Tuesday night.

Rodney Williamson, a Texas-based benefits consultant, said he has advised employers to shift from managed care plans, and instead make contributions to employees health savings accounts.

Employees are more likely to comparison shop when they are using their own dollars rather than relying on an insurance plan that pays most of the costs, he said.

Having folks care about the value of their health care dollars is the only way to rein in costs.

Medicine Tag
Health Tag