To help control the spiraling cost of health insurance, many employers are using cost-sharing as a way of focusing employees’ attention on health care costs and encouraging them to become better consumers of health care. Two new studies – one from Fidelity Investments and the other from the National Business Group on Health (NBGH) and Watson Wyatt – reflect optimism about the willingness of employees to alter their health care consumption behavior and save plan dollars. Consumerism is clearly an emerging trend as more firms ask employees to take personal responsibility for their health care decisions. HSAs appear to be an effective win-win solution, good for the company and good for employees.

Reduced Net Premium Expense - Corporations can reduce their insurance premiums substantially by cost-shifting to an HSA-qualified health plan.

Shift Premium Expense Dollars - Instead of paying 100% of premium dollars to a carrier, companies can shift a portion of premium expense dollars by partially funding their employees HSA account.

HSA Provides Incentives to Employees to Get Involved with Healthcare Decisions - By re-allocating insurance premium dollars to employee HSA accounts, employees now have a financial incentive to get more involved in the health care process.

Financial Rewards - Employees are directly rewarded for efficiently managing their health care as the HSA portion of their plan rolls over and grows tax-free year-after-year.

Tax savings - Contributions to the HSA are made with pre-tax dollars.