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Future of Medical Insurance is Savings Accounts

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Future of Medical Insurance is Savings Accounts

Future of Medical Insurance is Savings Accounts

In a recently held health care convention by Charlotte Chamber, business leaders have speculated that the fate of medical insurance is not the conventional copayment options but rather the personal savings accounts.

Although, the health savings and health spending accounts generally composes a small proportion of health insurance programs, but they are gradually becoming much popular among the different kinds of business establishments present in the Charlotte region. The main reason of their popularity is that they help both small and big business employers in saving a lot of money.

The HSAs enables individuals to save their dollars in a specialized account meant particularly for the health care expenditure. Many times employers pay their employees by depositing money in these accounts, so that the employees can reap health care benefits through this. It must be mentioned that the money once deposited in these accounts becomes the property of the person holding the account.

Health spending accounts operates similarly like a general health plan, but the thing is that these accounts are under the possession of the employer. Today many companies save a particular amount of money yearly, to reimburse the health care expenditure of their employees. This is a very cost-effective process when compared to the traditional, expensive way of offering health insurance to the employees. Health spending accounts serve more or less the same purpose. That is why today, more and more business organizations, especially the Fortune 500 Companies prefer this method of offering health care benefits to their employees.

Today, nearly eight million Americans are registered with HSA programs. When compared with last year, the rate of enrollment for this year 2009 has increased to 31%. In January 2009, around 123,000 residents of North Carolina signed up for the HSAs and it was found out that only 3% of the state's population of four million residents' availed coverage through private health insurance plans.

In the conventional copayment programs, the employees were required to pay a certain sum of money for their health care costs, while the company-funded insurance paid the remaining amount of money. But the HSAs offer employees with a fixed sum of money to pay for the health care costs. This allows them to spend money more sensibly, thus enabling their companies to save a huge amount of money.

Another feature of the HSAs is that the money deposited into these accounts is completely tax-free. No taxes will be implied on these accounts as the money is being used only for medical expenses. This makes these programs a hot favorite among both employers and the employees.

Although, many insurance experts have remarked that HSAs cannot fully replace health insurance programs. As per them, both governmental and private health plans will continue to exist because not every people of the nation are employed and have access to HSAs. But considering the present economic scenario and the helpful features offered by HSAs, it can be said that it will continue to dominate the health insurance sector in the days to come.

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