HSAs HELP SMALL BUSINESSES INSURE AMERICA
October 27, 2004
The new health savings accounts (HSAs), which were created by President Bush and the Congress as a part of last year's Medicare drug law, are already having a dramatic impact in lowering health insurance costs for small businesses and expanding access to previously uninsured small business employees, say observers.
- An Ohio small business with 66 employees (Ohio Waste Water) is saving $207, 566 (or 37 percent) on health insurance premiums in 2004 with a HSA plan.
- A New Hampshire self employed small business owner, Herve Riel, is saving $6,600 (or 66 percent) on his individual health insurance coverage in 2004 with a HSA plan.
- An Iowa small business counseling service with 8 employees is saving $14,740 (or 32 percent) on health insurance premiums in 2004 with a HSA plan. And an OBGYN clinic in Iowa with 13 employees is saving $40,608 (or 38 percent) on health insurance in 2004 with a HSA plan.
- A Wisconsin small business owner, Dr. Jeffrey Wilder, is saving $8,400 (or 70 percent) on his family health insurance coverage in the first year with a HSA plan.
Moreover, employees with HSAs also make better healthcare decisions because HSAs reward those who make wise purchases. HSAs will therefore help lower overall health expenditures. Because HSAs allow Americans to build wealth through good health, it provides a tremendous incentive for Americans to take more responsibility for improving their health and productivity.
"With savings like these, thousands of previously uninsured individuals, families, small businesses, and family farms are finding affordable insurance either for the first time or the first time in a long time," writes the Center for Health Transformation.
Source: Newt Gingrich and Vince Haley, "Small Businesses are Saving Money and Insuring More People Today with Health Savings Accounts," Center for Health Transformation, October 22, 2004.
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