THIS ELECTRONIC VERSION MAY DIFFER SLIGHTLY FROM PRINTED VERSION
There was a time when people -- and not doctors or insurance companies -- managed their own health care costs, and that might be happening again.As the cost of health insurance continues to rise at alarming rates, health savings accounts are becoming more attractive to business owners and employees, said John Goodman, founder of the National Center for Policy Analysis, at a Friday morning breakfast for business owners sponsored by Centier Bank at Avalon Manor. The accounts allow individuals to pay for medical expenses from a flexible account.
A health savings account is pre-taxed money that can come directly from a person's pay check and would be used like a personal savings account to pay for medical bills. The money is tax free as long as it is used for health-care costs.
The plan allows the consumer to take a more active role in selecting health-care providers because the consumer is closely watching the costs. Now, consumers have more access to information their illnesses and after visiting a doctor, can find out alternative options on the Internet.
Then, the consumer can decide how best to treat the medical problem.
'To a lesser degree, patients can get second opinions or online consultations over the Internet, but they are price-comparing and purchasing prescriptions online,' Goodman said. 'And self-monitoring devices for conditions, such as diabetes or asthma, are a further extension of that.
'If chronic patients cut costs, there's a huge pay-off for companies. And they're more likely to do that if they're managing their own money.'
The health savings accounts are popular with a wide range of individuals, Goodman said. In a study in which he participated, 38 percent of the people with these accounts weren't college educated; 46 percent of them had an income less that $50,000 and 70 percent of them were 50 years and older.
Goodman said the Aetna Health Fund, has seen a 13 percent increase in generic medication use.
