86% of Americans Don't Understand Health Savings Accounts, But 50% Say They Would Likely Use One
Only eight percent of Americans have a Health Savings Account, but 50% say they are somewhat or very likely to use an HSA to cut their taxes, according to a new report. Many Americans are confused regarding HSA eligibility, benefits and other specifics. For example, only 14% of Americans know that an HSA must be paired with a high-deductible health insurance plan.
More U.S. Companies Switch to High Deductible Health Plans
Over-all health care cost increases have slowed dramatically, but consumers may not notice it. Many face higher deductibles, co-pays and out-of-pocket maximums as employers' insurance plans try to encourage them to pay more attention to health care costs. One big problem is health care price information is often not available.
Over the last decade, the increasingly consumer-driven shift in health care has helped propel the adoption of new savings and financial management tools. The adoption of tax-sheltered benefits accounts – including HRAs, HSAs, and FSAs – are predicted to reach nearly 90 million accounts by 2017.
Brokers “Do a Disservice” in Not Pitching This Health Strategy
The HSA is a little understood and largely mistrusted approach to financing healthcare. Given the increased purchase of high deductible plans under the Affordable Care Act, however, more Americans now qualify for an HSA than ever before. Producers who assist clients in purchasing high deductible plans through the federal or state exchanges are making a big mistake if they don’t also pitch an HSA, said insuranceQuotes.com senior analyst Laura Adams.
In January 2013, LIMRA reported that 90% of industry executives it had surveyed believe that insurance companies will continue to form strategic alliances with “non-traditional organizations” to expand distribution. I would like to elaborate exclusively on the compelling reasons for insurers and Amazon to create a distribution model to match ever-evolving customer demands.