Small Business Needs To Look At Health Savings Accounts

Healthcare Premiums Could Spike 20 Percent:

Many small employers face hikes of 20% or more for health benefits in 2010, local insurance brokers say. Large firms are in line for a more-moderate average increase of 5.8%, although that’s the steepest in four years, according to a recent survey of Chicago-area firms by Lincolnshire-based Hewitt Associates Inc.

Business hasn’t taken advantage of health savings account insurance plans, and now may be the time to revisit this approach to insuring employees.

It benefits the employer through reduced premiums, and the employee gets the the savings account (that carries over each year). Over a few years the account becomes sizable.

The real benefit to the insurance plan is that by paying for medical care, patients learn the real value of the care they are receiving. Also, doctors like being paid at the time of service, and often offer discounts for doing so.

The health savings plan also provides a tangible reason to focus on wellness. When it’s your money, you tend to look after it more than when it’s free.

The Patient-Doctor Alliance offers many health insurance options for out members. You can find out more by clicking here.

You can also read more about health savings accounts here.

photo credit: the_amanda