Health Savings Accounts Hurt Poor, Care - Report

[Rose Siding]

CHICAGO (Reuters) - Health plans with high patient-paid deductibles, embraced by many Republicans as a market-based solution to quell soaring medical-care costs, lead to poorer quality care and increasing patient debt, a study released on Thursday said.

With the new plans, individuals typically pay the first $1000, or $2000 for families, spent on medical care each year. The plans are coupled with so-called health savings accounts, or HSAs, which allow patients to set aside tax-free funds to defray health expenses.

But a survey of data from 4,000 adults with health insurance found that about half of patients with a high-deductible plan racked up medical debt and were faced with other billing woes, compared with 31 percent of those with more traditional health plans, according to the research group Commonwealth Fund, which studies health policy issues.

"Health savings accounts coupled with high-deductible health plans have potential pitfalls, especially for families with low incomes or individuals with chronic disease," said Karen Davis, president of the foundation, which studies health policy. "The evidence is that increased patient cost-sharing leads to underuse of appropriate care."....

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