Abstract
Health Savings Accounts (HSAs) are a hot topic in the employee benefits arena, as employers of all sizes look for ways to control the relentless rise of health insurance costs. HSAs fall under the category of “Consumer-Directed” healthcare plans, which are designed to involve the consumer more in the financing and decision-making process related to the use of healthcare services. Figure 1 shows the average increase in health insurance premiums, workers’ earnings, and overall inflation from 1988 through 2005. In recent years, health insurance premiums have exceeded the rise in workers’ earnings and overall inflation by a wide margin.
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