Thursday, June 23, 2011

Health Savings Account Plans See Brisk Growth

Enrollment in high-deductible health insurance plans that can help consumers save for medical expenses climbed 14 percent this year and has jumped 87 percent since January 2008, according to the trade association America's Health Insurance Plans.

A total of 11.4 million had enrolled in high deductible plans that are eligible for health savings accounts as of January. That compares to 10 million in January, 2010, and 6.1 million people at the start of 2008.

High-deductible health insurance plans generally come with premiums lower than traditional coverage, but the patient or customers pays more out of pocket before coverage starts. If the deductibles are at least $1,200 for an individual and $2,400 for a family, the plan can be paired with health savings accounts. Customer can deposit pre-tax savings in these accounts, along with employer contributions, to help cover medical expenses.

Health savings accounts entered the market in 2004, and employers have shown a growing interest in plans that offer health savings accounts as they search for ways to corral spiraling health care expenses and make their workers more aware of the costs.

Large-group employers, or those with more than 50 workers, were the fastest-growing market for health savings account plans in the past year. California had the highest level of enrollment in health savings accounts with nearly 1.1 million.

While enrollment is growing in these plans, coverage with health savings accounts still makes up only about 7 percent of total health insurance enrollment for people under age 65.

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