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Consumer Directed Health PlansMost of you have heard about "consumer directed health plans". The Bush administration has been a strong supporter of this concept as a way to get a handle on soaring healthcare costs. The recent inaugeration of Mr. Bush signals that consumer directed health plans will increasingly make up a larger percentage of group medical plans over the next several years. In the past, consumer directed plan designs have taken on many forms: Medical Savings Accounts (MSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs). Many experts consider HRAs and HSAs to be the first generation of viable consumer directed health care products. HRAs are typically paired with a high-deductible health plan and are employer-funded Section 105 defined contribution plans. HSAs are the latest version of consumer directed health care plans. The core components of HSAs include a high deductible insurance product and a cash spending account. HSAs combine the pre-tax treatment of a FSA, the portability and roll-over characteristics of a 401(k), and the tax-free distributions of a Roth IRA. One of the main goals of any consumer directed health plan should be to get the consumer more involved in both the cost and statistical outcomes of certain healthcare procedures. Informed healthcare consumers will make wise healthcare decisions and typically these decisions will result in both lower costs and improved quality. Although the advantages of HRAs and HSAs can be substantial, employers will want to do their homework prior to setting them up. Effective implementation will require a clear understanding of the consumer directed healthcare plan that best fits your organization as well as the administrative requirements. Employee education will be essential. Companies will also need to look into how the creation of a HSA or HRA may affect their HIPAA medical privacy compliance requirements. Just like most endeavors, the successful implementation of a HSA or HRA will greatly depend on how much research your organization does on the pro's and con's of each alternative. The type of consumer directed health plan that best fits your company will depend on a combination of your corporate structure as well as the overall objectives of your group health insurance plan. Although consumer directed healthcare plans are becoming very familiar to human resource managers and other benefit professionals, remember that your employees and their dependents will need a substantial amount of education and communication. Other articles by this author »
About Michael Ertel
Michael Ertel is the founder of http://www.MedicalInsuranceNow.com which is a website that assists individuals and small business owners by providing side by side comparisons of health insurance alternatives. Related
And here is another random article you might be interested in... Are We Underestimating What We Spend On Credit Cards?An investigation organized by Egg says consumers have greatly underestimated the amount that credit cards are used throughout the United Kingdom, what this means is consumers are spending a lot more than they think. The investigation revealed that when consumers thought they had spent was £236billion was in fact £437 billion, some difference! How come there is such a big difference? Well most of us usually pay for everything with the plastic card and find it hard to keep track of what we spend. Most people have more than one credit card and a lot of them transfer their balances from time to time to get the best interest rate, so when you are working with two or more credit cards it's easy to miscalculate how much you're spending, and with so many different payment options for you to choose from you can see how there can be such a difference in what we spend, over £200billion! scary or what? Another question you have to ask is, if we do not know what is in our accounts how do we know we are not getting ripped off? Six out of ten consumers didn't know how much was in their accounts so money could be taken out and they would have no idea. Mind you some would say (not me you understand) if you don't keep track of your money you deserve to have it pinched. The British Bankers Association revealed that by the end of September, credit cards sales had fallen for the last two months indicating that consumers are being careful, but with Christmas around the corner I am sure the credit card sales will be up and we will have another bumper spending spree with the plastic cards. So the question was, are we underestimating what we are spending? well the facts definitely say yes! So what should we do about it well keep a tighter grip on your accounts, double check what's coming in and out and make sure everything balances at the end of the month. good luck! Some important contacts: Other articles by this author »
About Peter Kenny
Peter Kenny is a writer for creditcards-gb.co.uk. For additional articles and an extensive resource for everything about credit cards and loans, please visit us at http://www.creditcards-gb.co.uk and http://www.moneywize.co.uk Related
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