NCPA: Business Economists Endorse Consumer Driven Health Care

NABE Survey Cites Lower Cost, Improved Access & Quality

DALLAS (August 15, 2003) -- More than two-thirds of business economists say consumer driven health insurance is either very important or extremely important in lowering health care costs and improving the quality of care, according to a survey released today by the National Association of Business Economists (NABE).

"This is an amazing result, considering less than one percent of employees currently are enrolled in consumer driven health plans," said John C. Goodman, founder and vice chairman of NABE's Health Care Roundtable. Goodman is also president of the National Center for Policy Analysis (NCPA), an organization that developed the concept of Medical Savings Accounts (MSA), and he has been called the "Father of MSAs" by the Wall Street Journal.

Consumer driven plans give employees economic incentives to make prudent decisions in choosing a health plan and in consuming medical services. They usually involve an MSA or Health Reimbursement Account (HRA), from which employees spend on routine health care needs and save what they do not spend.

"Consumer-driven health care has the potential to change the face of health insurance in the U.S.," said Ken Linde, president and CEO of Destiny Health and chairman of the Consumer Driven Health Care Association.

"Adopting consumer driven plans with MSAs and HRAs, also reduces the number of uninsured and makes health plans more flexible, in contrast to a rigid managed care approach," said Goodman.

NCPA research on consumer driven health plans is available at: