Nefouse & Associates » hsa

Health Savings Account Enrollment Reaches Ten Million

Tony — Fri, 21 May 2010 13:08:30 +0000

New study show a large increase of Health Savings Account plans. These type of major medical plans are becoming popular because they create a reduction in premium. Consumers are starting to look at health insurance for major medical events and then small claims fall on to them. When the consumer now pays the first $2,500 in claims in a plan year they are more likely to shop out a minor procedure. If one needs an MRI on your knee its amazing to see the different charges for the same procedure. It very common to a $2,000 difference in price from the cheapest to the highest charge. Looking at the HSA in another way is you have your deductible to meet and that is it. So you know as a policy holder your worst case scenario in claims in one year is your deductible. Consumers have an easier time budgeting for just the deductible. The last reason we are seeing a large increase in HSA plans is the tax benefit side. Now all of your medical expense are tax deductible. So if you fund you HSA custodial account you can write off your contributions.Ten million Americans are covered by Health Savings Account (HSA)-eligible insurance plans, an increase of 25 percent since last year, a new census released today by America’s Health Insurance Plans (AHIP) finds. Health Savings Accounts were authorized starting in January 2004. Since then, AHIP has conducted a periodic census of health plans participating in the HSA/high-deductible health plan (HDHP) market.

“HSA plans continue to be an important coverage option for families and small businesses across the country,” said Karen Ignagni, President and CEO of AHIP.

Key findings from the census include:

• As of January 2010, approximately 10 million people were covered by HSA/HDHP products, an increase of 25 percent since last year.

• Between January 2009 and January 2010, the fastest growing market for HSA/HDHP products was large-group coverage, which rose by 33 percent, followed by small-group coverage, which grew by 22 percent.

• Thirty percent of individuals covered by an HSA plan were in the small group market, 50 percent of individuals covered by an HSA plan were in the large-group market, and the remaining 20 percent were in the individual market.

• In the individual market, 2.1 million covered lives are enrolled in HSA plans, while nearly 3 million lives were enrolled in HSA/HDHP coverage in the small-group market and almost 5 million lives were covered in the large-group market.

• States with the highest levels of HSA/HDHP enrollment were California (1,018,000), Ohio (651,000), Florida (639,000), Texas (637,000), Illinois (575,000), and Minnesota (361,000).

For more information about the 2010 HSA/HDHP census, please visit www.AHIPResearch.org.

HSA Contribution Limits For 2009

Webmaster — Wed, 10 Jun 2009 18:37:42 +0000

Eligible individuals with self-only coverage under a high-deductible health plan (HDHP) may contribute an annual maximum of $3,050 to their Health Savings Account (HSA) for 2010. Eligible individuals with family coverage (coverage for two or more individuals) under an HDHP may contribute up to $6,150 to their HSA. Individuals age 55 or older who are not enrolled in Medicare may contribute more to the account per year.

To be considered qualified for an HSA, the HDHP must meet certain IRS regulations.

For 2010, to qualify as an HDHP:

The minimum deductible amount must be $1,200 for self-only coverage and $2,400 for family coverage; increased from 2009 requirements.
The out-of-pocket maximum must be no higher than $5,950 for individual or $11,900 for family coverage; increased from 2009 requirements.
The HDHP must be set up with a combined medical/pharmacy deductible. This deductible must apply to the out-of-pocket maximum; no change from 2009 requirements.
All medical and pharmacy services must be subject to deductible and out-of-pocket maximum except for preventive services.

To view the 2010 HSA reference guidelines, click here.

Survey Finds Health Savings Account (HSA) Owners Satisfied

Webmaster — Wed, 10 Jun 2009 18:07:37 +0000

General Findings:

More than 80 percent of respondents cite their ability to save for future health care expenses as the primary reason for opening and depositing money into their HSAs.
70 percent of HSA participants make $75,000 a year or less in income.
82 percent of HSA owners are satisfied with their accounts.
78 percent believe the continued availability of HSAs should be part of any health care reform that may occur.
74 percent agreed they would recommend an HSA to a friend or family member.
Three out of 10 respondents said that they wouldn’t have health insurance if it were not for their HSAs.

Finance, physical well-being, health care engagement inquiries produced the following:

64 percent of the respondents said they inquired about generic options for medication.
47 percent indicated they asked their care providers about charges.
83 percent of respondents agreed people should research health care options and try to get the best price – just like they do for other major consumer purchases.
72 percent of respondents said that individuals should be responsible for helping to manage their own health care costs.

More Employers Are Moving Toward CDHPs, HSAs

According to a Watson Wyatt Worldwide and National Business Group on Health survey, 51 percent of companies now have a CDHP in place, a 9 percent increase from last year. Inside Consumer-Directed Healthcare reported that the number of HSAs grew about 40 percent year-over-year as of January 2009 and average savings balances grew 45 percent.

The survey was conducted online by an independent research firm between Feb. 27, 2009, and March 20, 2009, with a random national sample of 500 HSA owners. The survey measured satisfaction level, motivations for having an HSA and effects the accounts had on engaging people in managing a portion of their health care savings and spending. Participants had an HSA for at least one year, were covered by a high-deductible health plan and had an active HSA at the time of the survey. Margin of error for the survey was 4 percentage points or better with 95 percent confidence. HSAs are tax-free health spending and savings accounts available to individuals and families who have qualified high-deductible health insurance policies as determined by IRS regulation.