Up and down figures with Health Savings Accounts

The Employee Benefit Research Institute reports some interesting findings about health savings accounts, HSA’s. While the number of individual accounts increased in 2010, the balances of those accounts fell.

The number of accounts increased to 5.7 million, up from 1.2 million in 2006, and the total assets jumped to $7.7 billion. However, the report states that the average account balance in 2010 dropped to $1,355, down from $1,419 in 2009.

Other statistics include:  the average HSA balance increases with household income and the higher the level of education of the account holder, the higher the HSA balance is.

Why has the average HSA account balance dropped? Some will argue that with the current economic conditions, it is more difficult to put money into savings accounts. Others will say that the hsa accounts are being used more often on qualified medical expenses and that the owners are taking care of their health. Still others will say the funds are being used to pay for the excessive costs involved with health care.

It is true that health care costs are skyrocketing and the high deductible health plans associated with HSA’s can lead to higher out of pocket costs for individuals. If it is not possible to put more money into your HSA, the only way to increase the account balance is to decrease the amount which is taken out. The best way to do this is to reduce your medical bills. INSNET has helped individuals save money on their medical bills since 2007. Please visit www.myinsnet.com to learn how we can help you.

Those enrolled in CDHP’s spend less on medical services

Cigna has released it Fifth annual CIGNA Choice Fund study, which reveals some interesting numbers about their customers enrolled in CDHP’s. The study shows that CDHP customers spend less on medical services and receive equal or better care than those enrolled in a traditional PPO plan. Those enrolled in a CDHP are also more apt to take an active role in their health and are more satisfied with their health care service.

A common misconception of CDHP’s is the reason that costs are lower is because people are not receiving necessary care out of fear of the high cost involved. The CIGNA study points out that this is not accurate. When comparing those enrolled in their CDHP plan versus those enrolled in a traditional PPO plan, 9% enrolled in the CDHP plan had higher use of preventative care services, 87% receive no statistical difference in the level of care and only 4% receive a smaller amount.

When grading their overall satisfaction with their health plan,  83% of respondents were satisfied or very satisfied with their CDHP compared to 82% for all of CIGNA’s other health plans.

A tutor can help you save money on your medical bills

My oldest daughter is going to be a junior in high school this fall. That means SAT exams for college applications and a panic over paying tuition. Before getting ahead of ourselves, we want our daughter to score as high as possible on the SAT’s and are thinking of hiring an outsider tutor to assist.

I remember these type of services first becoming popular when I was coming to the end of my high school years in the early 1980′s. These services are run by professors, teachers or school administrators and they help students learn the ins and outs of how best to take the SAT exam.

These tutors are very similar to Patient Advocates. We use our expertise and knowledge to help people save money on their medical bills. We started INSNET in 2007, after performing the same service for insurance companies since 1985. We have saved insurance companies millions of dollars and are now doing the same for individuals.

Just like now is the time to be looking into tutors for my daughters SAT’s, now is the time for individuals to consider the services of a patient advocate because never before has out of pocket spending for individuals ever been greater. In 2009 the average family of four enrolled in a PPO health plan spent over $3,000 in out of pocket expenses. More and more people are now enrolled in high deductible health plans, so the potential is even greater for higher out of pocket expenses.

Little League baseball and CDHP’s; it is all about efficiency.

My son plays on our towns 9-10 year old Little League All Star baseball team. They won their district, then they won the State tournament, now they are representing Maine in the first ever Regional tournament for this age group in Rhode Island. As a parent, this is my first experience in All Star tournaments, and I have learned quite a lesson about the need for efficiency, especially for your pitchers.

In order to protect the pitchers young arms from overuse, there is a schedule of the number of pitches thrown and when the pitcher can pitch again. If they throw under 20, they can pitch the next day, 21-35 they need a day’s rest, 36-50, 2 days rest as so on.

A manager has to be especially aware of his pitchers pitch count and how the game is going because at some point they are going to have to make the decision to keep the pitcher in the game and risk not having him available for the next game, or take him out so he can pitch sooner.

With more and more people being insured with high deductible health plans, you need that same efficiency in how to spend your health care dollars. Many now have deductibles of $5,000 or more meaning that they are responsible for paying that amount each year before their insurance pays anything.

The lack of transparency in health care pricing today makes it difficult to be efficient. Also, medical bills can be confusing and difficult to understand. Furthermore, studies show that 8 in 10 medical bills contain errors. Just like the Little League team needs an effective manager, sometimes individuals need a health care expert or advocate who can help them.

I usually save the last paragraph of blog entries for a plug for INSNET services, but i’m going to end this one with a note about my efficient son who pitched his teams last game. He came in as a reliever and ended up finishing the last 4 2/3 innings of the game and threw only 42 pitches, meaning he only needs to rest 2 days before helping his team again. Yes I am a little proud!

We didn’t stop the oil spill, but we can stop money from pouring out of Health Savings Accounts

It has been reported recently that the massive oil spill in the Gulf has stopped. Although, there are many who will believe it is a temporary fix, which may not end up being a fix at all, as the solution has never been tested or implemented before.  By contrast, negotiating medical bills for HSA account holders is proven to stop money from pouring out of accounts and increase the amount of savings in them.

A health savings account works like any type of bank account, you make deposits and withdrawals. The idea of a bank account is for it to grow, and the best way to increase the amount of money you have in an account is to deposit more into it. With HSA’s there are limits to the amount that can be deposited. Another way to increase the amount in a HSA is to limit the amount of withdrawals. This is easier said than done.

Most people are confused and suffer from sticker shock when they see a medical bill. The lack of transparency makes it very difficult for an individual to determine if their bill is accurate and fair.

INSNET, LLC provides risk free medical bill review and negotiation for individuals who have a medical bill over $200. INSNET was formed by the founders of Insurance Negotiating Service, who have negotiated medical claims for insurance companies since 1985, and in the process have saved them millions of dollars. Today the same cost saving tools are available to individuals, that their insurance company has had access to for decades.

The oil spill is thought to be contained due to the idea of a plumber; who better to call when you have a leak? When you have a medical bill, and want to limit the amount withdrawn from your HSA, who better to call than INSNET?

Have a hospital bill to pay out of your HSA? We can help you save money.

JP Morgan Health Savings Account released a study of the saving, spending and investing habits of it 500,000 HSA accountholders. The study showed in increase in the number of account that have balances over $1,000 and $2,000.

The study also states that the average spent or distributed per HSA in 2009 was $1,305, or about $109 per month. Purchases made at a drugstore accounted for the highest volume of transactions. Not surprisingly, hospital expenses had the highest average dollar amount per transaction at $212.

INSNET offers risk free medical bill review and negotiation services on any medical bill with a patient balance over $200.  That means if you have a hospital bill and plan on paying it with funds from an HSA, we can save you money and keep more of your money in your HSA.

Average family of four paid $1,303 more healthcare in 2009

The Milliman Medical Index for 2009 was recently published and inside are some scary figures for those who are struggling to make financial ends meet. Medical costs for a family of four enrolled in a PPO healthplan was $18,074 for 2009. According to the study,the average family of four spends over $3,000 in out of pocket health care expenses.

Employer’s who sponsor the PPO plans pay the bulk of this expense, picking up 59%. The remaining 41% is the patient’s responsibility, with 24% coming in the form of payroll deduction for the monthly premiums and 17% from out of pocket expenses at or near the time a medical service is needed. Since 2007 the employee portion has increased while the employer portion has decreased.

This study was based on those enrolled in a PPO healthplan and does not count the 23 million people who enrolled in high deductible health plans in 2009. By definition, these individuals would have higher out of pocket expenses due to higher deductibles.

Medical bills are difficult to understand and almost impossible to decipher for accuracy or fairness. Most bills are filled with alpha numeric codes which are geared for insurance companies to understand. When a patient receives their bill they assume the insurance company did their best to reduce it for them, but what incentive do they have if they are not paying the bill?

Patient Advocates like INSNET help individuals reduce what they pay on their medical bills. Using data collected over 20 years we know what a fair price to pay is on your care and we know the lowest your facility will accept. INSNET was formed by the founders of Insurance Negotiating Service which has helped insurance companies save money on medical bills since 1985. We know the language used on the bills and have the track record to save money.

How to increase the amount in your HSA

Health Savings Account are a great way for consumers to be more involved in their health care. Health Savings Accounts are bank accounts which are paired with a high deductible health plan. You pay for qualified expenses out of your HSA until your deductible has been met, at which time any further medical expenses are paid by insurance.

One concern is being able to fund enough in a HSA to cover anticipated expenses in a calendar year and also in the future, after retirement. According to a report by the Employee Benefit Research Institute, EBRI, the average husband and wife turning 65 in 2010 will need $376,000 to pay for out of pocket medical expenses not covered by Medicare.

The EBRI report predicts that HSA’s will replace employer provided healthcare the same way 401k’s replaced pension funds. One big concern is how can you save enough when you have a limit of $3,000 you can contribute yearly? One way is to reduce the amount paid out of the HSA.

Patient Advocates such as INSNET, LLC help individuals reduce what they pay on their out of pocket medical expenses. Patient advocacy services are a great fit for those who have high deductible health plans.  Studies show that 8 in 10 medical bills contain errors. Many assume their insurance will review their bill for accuracy, but what incentive do they have if they are not paying the bill?

INSNET’s service is risk free, they keep a percentage of the amount saved on your bill, and there is no fee if there is no savings. Any medical bill with a patient balance exceeding $200 is eligible. To learn more visit www.myinsnet.com.

HSA’s could be a big winner in healthcare reform

Now that the healthcare reform bill has been signed into law, many people have healthcare and health insurance on their mind. A portion of the bill has many focusing their attention on health savings accounts.

The bill contains mandates that businesses with over 50 employees must purchase health insurance. The bill will require businesses to insure their employees by the year 2014. According to a Wells Fargo Benefits Marketplace Survey, many employers were already shifting health care costs to employees in 2010.

“Those who will subject to mandates in the future are looking for ways to control their costs before they get locked into something down the road” said Roy Ranthum, President of HSA Consulting Services. “Employers are already moving to HSA’s”

What does this mean to the average employee? The health savings account is paired with a high deductible health plan, meaning you pay your medical expenses (out of your health savings account) up to the deductible before your insurance pays anything. Depending on your health, it could lead to higher out of pocket medical expenses. To assist those with higher bills, we are available to review and negotiate their medical bills. INSNET performs risk free medical bill review and negotiation services for any medical bill over $200.00

Enrollment in high deductible health plans rises sharply

I recently came across this story which states that according to the Center for Disease Control and Prevention that enrollment in high deductible health plans rose 5.9% over the last two years.

During the first 6 months of 2009, enrollment in high deductible health plans, HDHP’s, for those under age 65  was 22.7%. For comparison, in 2007 17.5% of individuals were enrolled in a HDHP.

For nearly one quarter of those with insurance, the choice to enroll in a HDHP was the lower cost of monthly premiums.  Nearly 50% of those who purchase health insurance themselves (not offered by their employer) also enrolled in a HDHP.

When an individual has a HDHP, they are responsible for higher out of pocket medical expenses. INSNET is available to assist those who are looking to save money on their medical bills.  Any medical bill with a patient balance exceeding $200 is eligible to be sent for risk free medical bill review and negotiation. INSNET charges a percentage of the amount saved, with no fee if there is no savings.