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Experts: People aren't taking advantage of health savings plans

Patient Financial Services Weekly Advisor, January 27, 2006

More than two million people have signed up for consumed-directed health savings plans since the health insurance sign-up season last fall and experts believe that number will steadily rise, the New York Times reports.

These health plans offer people lower monthly premiums and the ability to put pretax dollars into a savings account that grows tax-free and which the person can use to pay the deductible in future years.

In many cases, people have signed up for the plan because it looked less expensive or because they had no other insurance options. Half of the enrollees have not put money into their savings account.

Critics believe the plans only increase patients' out-of-pocket expenses as some struggle to meet the yearly deductible. This may also encourage the patients to bypass routine preventive care that could prevent bigger medical problems in the future.

In the end, it means more money for hospitals to track down after the delivery of service.

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