(California's) Insurance Chief Criticizes Health Savings Accounts

[papau]

http://www.latimes.com/business/la-fi-insure3aug03,0,4020693.story?track=tottext

Insurance Chief Criticizes Health Savings Accounts
Such plans that reduce benefits to save money are symptoms of the rising costs of health coverage, Garamendi says in a report.
By Debora Vrana
Times Staff Writer

August 3, 2005

California's insurance commissioner plans to issue a report today criticizing health savings accounts and other "consumer-driven" insurance plans as part of the problem of spiraling costs — not the solution.

Saying the state's healthcare system is headed for a "complete breakdown," John Garamendi sharply attacked new insurance plans — including some backed by the White House — that offer reduced benefits to save money. These plans shift risk to consumers without solving the underlying problems, he said. <snip>

Garamendi, who regulates all insurers operating in California, expects to hold several hearings, beginning next month in San Francisco, to examine new kinds of health plans with cheaper premiums and fewer benefits. He said the state must ensure that residents had access to insurance that was both affordable and effective to prevent the burden from falling on taxpayers. <snip>

(health savings accounts)They "put the entire health system at risk" by drawing healthy workers out of traditional HMOs or PPOs and making the plans more expensive in the long run, the 74-page report said. That, in turn, could lead to more uninsured and more people driven out of costly employer-sponsored plans and into the public health system.<snip>

[Lydia Leftcoast]

1. He's right: the ones I've seen are all more expensive than a

traditional plan.

I considered joining one a couple of months ago when my monthly premiums went up. I found that the one operated by my insurance company not only had the same premiums but also required a higher deductible. :wtf:

It leaves open the possibility of accumulating a savings account, but since I'm pretty healthy, I'd rather save money on lower monthly premiums and a lower deductible!

[papau]

2. Health savings just helps insurance companies- and avoids Universal Health

:-(