Monday, December 04, 2006
Small companies like health savings accounts
Amy Joyce has an article, "Shifting Risk, Responsibility: New Health Plans Move More than Costs to Employees," on Sunday Dec 3, 2006, in the Washington Post, here.
One small company in Rockville, MD, TeraTech, made a switch from a Blue Cross Blue Shield Plan to a health savings account, which shields $5250 for a single and $10500 for a family from taxes. However, the money must be spent within a certain time period, which encourages preventive care. It is particularly effective with known expenses, such as a pregnancy, or possibly for recurring conditions like HIV or diabetes.
HR Magazine, December 2006, has an article by Susan J. Wells, "Will Employees Orchestrate Their Own Health Care? Consumer-directed health coverage requires employees to make wise decisions on care and spending. But will it improve health and cut costs?" The acronym for these plans is CDHP.