The HSA and the HDP (high deductible policy), is this the future of medical insurance? Will this figuring that future changes that is obviously going to come (who knows what changes?) will make this type of policy the standard and people break away from the more (far more) expensive group coverage that employers are offering today.

I think they should decouple the health capital accumulation fund (e.g. savings account) from the type of insurance plan that can be obtained by the consumer. The rational for this line of reasonning is that the consumes should be able to purchase more of what they do want in any form of health related insurance. There should be no restrictions on the type of carrier or policy the conumers obtain with their own capital.

Not sure exactly what you are trying to say, yet understand that the HSA Money doesn't go towards the payment of the insurance, High Deductible Plan in this case. Unless you are unemployed then you can use the money in the HSA to pay for your insurance premium.

Why are there any restrictions on what type of health insurance a consumer can use their capital on? Ideally, any money (health capital) saved by the individual consumer should not have any restrictions on how the money is spent if it is for health related purposes. For example, if I want to purchase any type of health plan, using pretax dollars; I should be able to purchase the most cost effective plan for my current needs. I should not be limited to only specific plans, since market conditions can change over time.

The future and the past. Government tax policies moved us away from true insurance towards what is aften more akin to a prepaid group expense plan. Does your car insurance cover oil changes? Or let you fill up your tank any time, so long as you pay the $5 copay? Insurance is a safety net against major, unforseeable (okay, foreseeable but unpredicatable) events that would otherwise cause financial hardship or ruin. That is, an HDP. The HSA is just the government's way of making the HDP palatable to those who are used to minimal out-of-pocket expenses.


I agree, but since a major goal of the HSA plan is to wean people over to HDPs, there are restrictions. I know how it works for company-sponsored HSA/HDP combos; not sure about private ones.

__________________
Today's forecast: Government corruption.

Tomorrow's forecast: 100% chance of more 'politics as usual'

Maybe it's finally time to vote Libertarian

I am of the opinion that freer market principles will eventually lead to better products for the consumer and at lower, or more reasonable prices.

Putting micromanagement restriction on this type of financial tool only limits its effectiveness. The scale economies implemented by command economics would be better put to use in infrastructure development (e.g. the energy sector or research and development in the healthcare/pharmaceutical sector).

Quite right. Towards that end, they should not even have HSAs. But for now, they're a useful tool to help dig out of the quagmire that health not-really-insurance has become.

__________________
Today's forecast: Government corruption.

Tomorrow's forecast: 100% chance of more 'politics as usual'

Maybe it's finally time to vote Libertarian

No question about it, the Major Medical Co Pay along with Group Insurance subsidize by the employer has really bastardize Medical Insurance. No I think the push to the HDP via the HSA is the future of Medical Insurance. Yet though any way you look at it the HDP is cheaper then the low deductible co-pay plan with or without the HSA.

Why do you think that an employer subsidy for group insurance is a bad thing? With an HSA, it really doesn't matter. The consumer should still be able to shop around and obtain the best deal on the market.

Too expensive causing many employers to stop offering it or offering an inferior product. I have no doubt more and more businesses will be offering the HSA or the HRA to cut cost.

What do you think of an alternative scenario where there are no restrictions on an HSA and the employer provides some contribution to the HSA as part of a competitive compensation package? Simplification of benefits could reduce employer costs (similar to 401k contributions) while allowing the individual consumer to shop around for the best deal that suits their lifestyle.

First thing is first, first we must wean ourselves off of this Major Medical and the Co Pay mentality, esp. group plans that shelter us from the true cost. Go to the Dr's at a drop of a dime is causing the increase of Health Insurance more then any other factor outside of life longevity and catastrophic care. Once these are address sure, but if you are suggesting just switching how we pay for our Major Medical Co Pay, NO, it has to go and no doubt it will eventually or we will be facing a worst alternative. A National H/C that will force a change on how society views the medical profession and the Dr visit for the most minor of things.

While I agree with your premise, it is still much easier for the individual consumer to purchase the type of product they want. Market principles should still offer better solutions at lower cost for those individuals that are willing to look for them. Having any restrictions on that type of flexibility does not improve on an individual’s personal choice.

The scale economies that those types (of legislated) restrictions create are better suited to sweeping upgrades in the energy or pharmaceutical sectors.

Well you have a point but I have one other point, and its a big one! I like selling HSA's make good commissions and they really help people that don't have group coverage.

I thought that was where your interest was. I am not sure a more market friendly version will actually help if you are speculating on that market. However, you can still get alot of satisfaction from helping people with their healtchcare needs and try to develop better products that are in greater demand than any competitors products. It wouldn't be as lucrative as having the public sector giving your industry a virtual monopoly on a product; but we can still claim that the consumer is getting a better deal than would otherwise be the case.