Want cheaper health insurance? Don't kill HSAs
A new study from Georgetown University offers a three-part strategy for cutting health insurance costs — a worthwhile goal if there ever was one.
TL;DR
- A Georgetown University study suggests a strategy to cut health insurance costs by limiting deductibles, which would phase out HSAs.
- HSAs allow individuals to set aside tax-advantaged money for medical expenses, giving them incentive to consider costs and shop around.
- Evidence suggests HSAs can reduce healthcare spending, with enrollees spending 5-7% less than those in traditional plans.
- Lowering deductibles, as proposed by Georgetown, would increase insurer payouts and lead to higher premiums.
- Congress has made Bronze and catastrophic plans HSA-compatible, a direction that should be built upon.
- Expanding HSA accessibility and flexibility can make healthcare more affordable and useful to more people.