Explain why Health Savings Accounts are better than traditional PPO. Why do employers prefer HSA over traditional PPO? Does HSA give patients more control over the care they receive, is their any tax incentives that comes with having HSAs?
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They are certainly not a silver bullet. I am a healthcare attorney in Georgia and I can tell you that listening to the current politicians on this subject makes my eyes roll. The idea behind a health savings account is that it reduces usage because they have (usually) a very large deductible health insurance plan along with them. The idea is that the deductible, usually around 5000.00 prevents people from overusing healthcare because these are your dollars. Moreover, the high deductible plans are much cheaper for employers and they usually reap quite a benefit from simply paying the deductible dollars rather than insurance premiums.
As for tax savings, yes there are some. THe dollars that go into the account are not taxable and if you do not use them you get to keep them tax free. Also they can be used for treatment not typically covered by health plans such as vision, chiropractic and even acupuncture.