Side Effects: HSAs an Endangered Species under Obamacare

Kathryn Nix / June 01, 2010

Why is there so much excessive—indeed, downright wasteful—spending in health care?  One reason is the disconnection between patients’ wallets and their health care bills.

Most Americans get health insurance through their employers.  They neither witness nor control the flow of their dollars from employer to insurer to health care provider. Yes, those health care dollars are their compensation, just like wages. But with no visible “skin in the game,” they have little incentive to limit spending.

Engaging patients in the cost of their own care is one way to motivate them to seek better value for the health-care dollar–good quality health care at a reasonable price.  And consumer-driven health plans, such as health savings account (HSA) plans, do just that. (more…)