Fact or Fiction

Chances are you've heard good things about HSAs. Chances are you've also heard bad things about them. Any attempt at healthcare reform is controversial, and HSAs have supporters and critics.

This section separates facts from fiction. If you are considering an HSA, you should have the facts.

HSAs are only for the wealthy and healthy. They are the only ones who can afford the out-of-pocket expenses that come with a high deductible health plan.

FACT
HSAs are for everyone. Traditional plans often do not limit the amount of out-of-pocket expenses. HDHPs have a limit and then cover all expenses 100%. Depending on your medical expenses, you may save money using an HSA/HDHP.

Evidence indicates that people do not use all of their money for medical expenses. Most use some funds, but have remaining funds that carry over to the next year. Research shows that 50% of people with HDHP/HSAs are over 40.

HSAs do nothing but shift costs from employers to employees.

FACT
Research shows many employees cannot afford to participate in employer offered health insurance. Worse, employers continue to drop insurance coverage due to rising premiums. In the crudest sense, HSAs may be viewed as shifting costs. However, given the staggering costs of health insurance, employers need to have employees take more responsibility for their care.

HSAs are not popular among consumers.

FACT
There are over 3.2 million people enrolled in HSAs. Projections show this number will jump to approximately 14 million by 2010.

People with HSAs are less likely to receive timely medical care.

FACT
Research shows those with HSAs are 30% more likely to get their annual exams compared to those with traditional plans. Further, they are 20% more likely to follow a treatment regimens and 25% more likely to engage in healthy behaviors. There has been no evidence suggesting people put off receiving the care they need.