How States Can Control Employee Health Costs
In 2006 Indiana Governor Mitch Daniels introduced consumer-driven options and increased employee cost-sharing for managed-care plans. Employee premium contributions to the consumer-driven plans average about $260 per year versus $6,000 for managed care. It’s no shocker that 70% of workers have opted for consumer-driven plans.
A study by Mercer Consulting found that the consumer-driven plans saved Hoosier taxpayers as much as $23 million and employees as much as $8 million last year. According to Mr. Barro, governments nationwide could cut $20 billion from their $130 billion health-care bills by adding HSAs to their plan options.
Full WSJ article on employee health costs.
Three cheers for Governor Daniels.
I believe this program is unique in the country.
Go figure. Yet the public employee unions fight HSAs tooth and nail!
I’ve never understood why the entire country is not in an HSA plan. If workers really understood that it’s their money that pays for their $15,000 employee family health plans, they would demand control. In the self-employed market and the individual market, consumers do recognize the trade-off and opt for HSAs.
Obamacare has managed to take what works (such as Indiana) and replace it with something that will never work.
Sounds good. Why doesn’t Mitch Daniels step up and take a run for the 2012 nomination?
I’m with Devon. Employees don’t really understand that they’re paying for their high-benefit plans with lower salaries. I’d rather pocket the extra cash and be able to stash it in my HSA than pay it all out in premiums.
its look petty sound. i am in support of Devon.
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