| It’s a growing trend, American employers providing less health care and retirement benefits for their employees. While many look to government for a solution to fill the widening discrepancy, health insurance providers have taken another tack offering Health Savings Accounts (HSAs) as a viable solution.
Often misunderstood and touted as an option only for the wealthy, HSAs are a tax-free savings account that not only funds health care, but also continues to accumulate until maturation at retirement. Traditionally HSAs have included higher deductibles. Recently deductibles have become lower, making plans more attractive. What opponents do not take into consideration is the monthly reduction of rates which allows the subscriber freedom to save for potential bills at their discretion, or to use the savings for other healthcare expenditures such as dental, vision or hearing.
“I tell people it’s buying your health plan instead of renting it,” says William Perkins, President of GHB Inc. Insurance and Financial Services of Olympia. “With a traditional plan you have nothing to show for at the end of the year. If you don’t have any claims the insurance company doesn’t give you any premium back. With an HSA you are a true consumer because you have control of your money. If you have no claims for the year your money rolls over to the next year and the next year after that.”
As reported in the February 2006 issue of the Kitsap Peninsula Business Journal, a recent poll of local business leaders 21 percent supported this type of solution, allowing Americans to set up tax-free HSAs as a way to increase the number of Americans with health coverage. Other recommendations included government support such as tax incentives, credits and expanding Medicaid coverage.
In President Bush’s 2006 State of the Union address, he called for additional government measures to improve HSAs appeal and to make them more available to an extended income bracket. Some of those included tax relief, allowing higher contributions to the accounts of chronically ill employees, and enabling portable HSA qualified health plans to move with the employee from job to job. Already employees don’t lose the funds in the savings account when changing jobs, but the plan’s benefits don’t continue.
“The great thing about an HSA is that it is owned by the individual, not the employer,” KPS President and CEO Elizabeth Gilje said. “If an individual changes jobs, the HAS goes with the employee and the funds can be used to pay health insurance premiums during any period of unemployment, or they can stay in the account and gain interest.”
For example, KPS Health Plans has developed an HSA with a deductible of $2,700 per enrollee and $5,400 per family. Monthly rates per employee for the Platinum HSA plan start at $95.89 for persons less than 25 years of age. Additional group and individual HSA plans are also available.
For more information visit www.kpshealthplans.com. | 
