$4 Wal-Mart Drugs Increase Health Savings Account Appeal
As consumerism in the health insurance industry slowly takes hold, Health Savings Account owners will continue to benefit. Greater price transparency and lower prices on prescription drugs are just a few of the emerging benefits available to individuals with Health Savings Accounts.
Fort Collins, CO (PRWEB) September 27, 2006 -- Wal-Mart’s announcement last week that they will be offering 291 generic prescription drugs for just $4 a month has already resulted in an increased interest in HSA-compatible health insurance plans according to industry leader HSA for America.
“I think people realize that if they can buy their prescriptions drugs that inexpensively, it doesn’t make sense to pay a lot of money for a health insurance plan that offers $15 copays for generic drugs,” says Wiley Long, president of HSA for America.
Health savings accounts, or HSAs, are tax-favored accounts that can be used to save tax-free for future medical expenses. They are available to anyone who has an HSA-qualified high deductible health plan. These plans have deductibles starting at $1,050 for individuals and $2,100 for families, and do not cover prescriptions until the deductible is met.
“The higher deductible can take a little getting used to for people who are accustomed to low co-pays for prescription drugs and doctor visits. But when you consider that premiums are 30 – 40% less than traditional co-pay plans, it really makes a lot of sense," he said.
Long says another appeal to HSAs is the fact that if the money in the account is not used to pay for medical expenses, it grows tax-free like an IRA. “Some people are calling these plans ‘medical retirement accounts’, because they are a great way to save for medical expenses we will all face in old age. Not only is the money deposited in the account tax-deductible, but any money taken out to pay for medical expenses can be withdrawn tax-free.”
Currently there are nearly 3 million HSAs, and nearly $5 billion deposited in these accounts. Over 50,000 new accounts are being opened each month, and some experts predict that by 2010 there will be as many as 25 million HSAs covering over 70 million people.
Long estimates that interest has surged 20% since Wal-Mart’s announcement of lower drug prices.
Learn more about Health Savings Accounts and what they can do for you at: http://www.health--savings--accounts.com
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