Bush said: “We will strengthen Health Savings Accounts – by making sure individuals and small business employees can buy insurance with the same advantages that people working for big businesses now get.”
FACT — HSA USERS MORE LIKELY TO HAVE DIFFICULTY PAYING MEDICAL BILLS: Individuals with high-deductible insurance plans (HDHPs), which are mandatory with health savings accounts, are “more likely than those with traditional medical coverage to have difficulty paying their medical bills. Forty-nine percent of consumers with deductibles above $500 per year wound up with outstanding medical debt, vs. 32% with regular coverage.” [WebMD Medical News, 1/27/05]
FACT — HSA COST SAVINGS ARE ILLUSORY: HSAs are supposed to save costs by discouraging people from obtaining unnecessary health care. But about 70 percent of costs in the U.S. health system are for the top 10 percent most expensive people. These people’s costs are well above the deductible, and they usually require hospitalization or are chronically ill. A high deductible won’t change their behavior. [New Yorker, 8/29/05]
FACT — HSA USERS PAY MORE OUT-OF-POCKET COSTS: According to one study, “more than two-fifths (42 percent) of individuals with HDHPs [high-deductible insurance plans] and 3 in 10 (31 percent) in CDHPs ["consumer-driven" health plans] spent 5 percent or more of their income on out-of-pocket costs plus premiums in the past year, compared with about 1 in 10 (12 percent) in comprehensive health plans.” [Commonwealth Fund/Employee Benefit Research Institute, December 2005]
FACT — HSA USERS MORE LIKELY TO AVOID, SKIP, OR DELAY HEALTH CARE BECAUSE OF COSTS: Individuals in health savings accounts were “significantly more likely to avoid, skip, or delay health care because of costs than were those with comprehensive insurance, with problems particularly pronounced among those with health problems or incomes under $50,000.” Over 30 percent of individuals in these programs “reported delaying or avoiding care, compared with 17 percent of those in comprehensive health plans.” [Commonwealth Fund/Employee Benefit Research Institute, December 2005]
Previous in TP Politics
By clicking and submitting a comment I acknowledge the ThinkProgress Privacy Policy and agree to the ThinkProgress Terms of Use. I understand that my comments are also being governed by Facebook, Yahoo, AOL, or Hotmail’s Terms of Use and Privacy Policies as applicable, which can be found here.