HSA’s Present A GREAT Health Care Solution
Five years ago, Gov. Mitch Daniels (R) of Indiana requested that a consumer-directed health insurance option, or Health Savings Account (HSA), be added to the conventional plans then available to state employees.
* In Indiana’s HSA, the state deposits $2,750 per year into an account controlled by the employee, out of which he pays all his health bills; Indiana covers the premium for the plan.
* The intent is that participants will become more cost-conscious and careful about overpayment or overutilization.
* Unused funds in the account — to date some $30 million or about $2,000 per employee and growing fast — are the worker’s permanent property.
* For the very small number of employees (about 6 percent last year) who use their entire account balance, the state shares further health costs up to an out-of-pocket maximum of $8,000, after which the employee is completely protected.
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