Myths of HSAs

1
Myths of HSAs
2
HSAs are only for the healthy

• No significant difference exists between having
  an HDHP or a non-HDHP and reporting average to
  excellent health (96.2 v. 92.2)
• Source Consumer Benchmark Survey, 4/08
  (Appendix A)
• 11 of HSA-eligible enrollees reported having a
  health status of poor or fair, compared to 12 of
  non-HSA account holders
• Source CDHPs Consumer Perspectives, 9/07
  (Appendix B)

3
HSAs are only for the wealthy

• 66.3 of respondents had an annual household
  income of less than 85,000
• Source Consumer Benchmark Survey, 4/08
  (Appendix A)
• 42 of HSA holders have incomes of less than
  50,000
• Source U.S. Department of Treasury Dramatic
  Growth of HSAs (Appendix C)

4
HSAs are only for the young

• HSA Banks average accountholder age is 44
• 50.2 of respondents were 45 years-old or older
• Source Consumer Benchmark Survey, 4/08
  (Appendix A)
• 46 of HSA accountholders are 40 years old or
  older within the individual market
• Source January 2008 Census, AHIP, 4/08
  (Appendix D)

5
People with HSAs are less likely toreceive
timely medical care

• No significant difference exists between
  respondents with an HDHP and those with a
  non-HDHP when deciding against a treatment due to
  cost
• No significant difference exists between
  respondents with an HDHP and those with a
  non-HDHP when deciding to delay a treatment due
  to cost
• Source Consumer Benchmark Survey, 4/08
  (Appendix A)

6
People with HSAs are less likely toreceive
timely medical care

• People with HSAs are 30 more likely to get an
  annual exam compared to people with traditional
  plans
• People with HSAs are 20 more likely to follow a
  treatment regimen than people with traditional
  plans
• People with HSAs are 25 more likely to engage in
  healthy behaviors than people with traditional
  plans
• Source Consumer-Directed Health Plan Report
  Early Evidence is
• Promising, 6/05 (Appendix E)

7
People with HSAs are less likely toreceive
timely medical care

• HSA eligible enrollees and non-CDHP members
  decided not to go to the doctor at the same rate
  (18)
• HSA eligible enrollees and non-CDHP members
  delayed going to the doctor or having a procedure
  at the same rate (17)
• HSA eligible enrollees and non-CDHP members
  delayed filling or did not fill a prescription at
  the same rate (15)
• Source CDHPs Consumer Perspectives, 9/07
  (Appendix B)

8
HSAs do nothing but shift costs from employers to
employees

• The average cost per employee with HSA-based
  CDHPs is 14.5 lower than the average cost per
  employee with a PPO that has a deductible of
  1000 or more
• For large employers, the average cost per
  employee with an HSA is 26.2 lower than the
  average cost per employee with a PPO
• Source Mercer National Survey of
  Employer-Sponsored Health Plans,
• 11/07 (Appendix F)

9
CDHPs are not gaining traction with employers

• 47 of large employers offered a CDHP in 2008
• Source Business Insurance, May 26, 2008
  (Appendix G)
• 72 of employers with 10 or more employees
  indicated they are very likely to offer a CDHP in
  2008
• Source Mercer National Survey of
  Employer-Sponsored Health Plans, 11/07 (Appendix
  F)
• The employers average cost per employee for a
  CDHP is lower than the average cost per employee
  in an HMO (by 16.2), PPO (by 18.8), and POS (by
  22.6)
• Source Mercer National Survey of
  Employer-Sponsored Health Plans, 11/07 (Appendix
  F)

10
Employees are very unhappy with CDHPs

• CDHPs have a satisfaction rating of 85 as
  compared to 92 for other plans
• Source Business Insurance, May 26, 2008
  (Appendix G)
• Of the 537 respondents that have an HDHP, 72.6
  chose that plan over a traditional plan
• Source Consumer Benchmark Survey, 4/08
  (Appendix A)