Categories

Most recent posts

  XML Feeds

Search

« New Report Spotlights Excessive Out-of-Network Medical BillsAdults Need More Vaccinations, CDC Report Says »

Bigger Balances In Consumer-Driven Accounts, But Reform May Dilute The Gains

01/31/13

  05:36:28 pm, by MedBen5   , 232 words,  
Categories: News, Health Plan Management

Bigger Balances In Consumer-Driven Accounts, But Reform May Dilute The Gains

As the economy gradually improves, Americans are putting more money into health savings accounts (HSAs) and health reimbursement arrangements (HRAs). But as Employee Benefits News reports, the increases may be short-lived.

Following stagnant or declining contributions from 2008 to 2010, new research shows that average account balances climbed 9% to $1,470 in 2011, and rose another 4% to $1,534 last year. Contributions to HSAs can be made by an employer or account holder, while HRAs are funded wholly by the employer.

“People may have been afraid to tie up money in an account,” says Paul Fronstin, director of the Employee Benefit Research Institute, referring to the Great Recession years when balances declined. “We know that people cut back on health care services overall.”

Frostin believes that as new provisions of the Affordable Care Act continue to get rolled out, more Americans will have high-deductible health plans (HDHPs) with corresponding HSAs. However, “the overall average [account balance] could go down again, with people opening accounts and not putting much in them,” he adds.

MedBen offers consumer-driven health plans (CDHPs) across all group sizes. In addition to the administration of a HDHP tied to an HSA, we offer HRAs and flexible spending accounts (FSAs). These plans can be offered on a stand-alone basis or in a variety of combinations.

To learn more about CHDP options available to your group, contact MedBen Vice President of Sales and Marketing Brian Fargus at (888) 627-8683.

No feedback yet