Regence BlueCross Blue Shield of Oregon
Regence Health Savings Account
Frequently Asked Questions
For employers:
Q: What are the advantages to the employer?
A: Employer contributions to a health savings account are tax-deductible in year in which the contributions were made. For small employers without a retirement plan, funding a health savings account could be a way to offer retirement savings to employees.
http://www.or.regence.com/needCoverage/individual/hsa/index.html
Comment: Are Health Savings Accounts (HSAs) a form of health insurance, or are they retirement plans? Pension planning involves setting aside funds to be used as an income source by each individual in his/her retirement. In contrast, health insurance is a method of pooling funds to pay for health care, health care which will be used disproportionately by those with greater health care needs.
When Congress authorized policies to combine retirement planning and health insurance in the form of HSAs, they created a product that serves neither function well. Individuals with significant health care needs automatically lose their retirement benefits as they draw down their accounts. As health insurance, the pooled funds are split up into small, individual accounts, providing inadequate funding for those with greater health care needs.
Congress recognized that HSAs are not a form of health insurance and would not provide adequate financial security in the face of medical loss. As a result, the legislation requires that participants in HSA plans must have what? Health insurance! This has created new opportunities for insurers to market highly profitable, high-deductible PPO plans that fail to provide adequate financial and health security for the majority of moderate-income individuals.
Regence BlueCross BlueShield is passing the HSA off as a retirement savings plan, but absent the disclaimer that the retirement benefits will be denied to individuals with health problems. What a perversity!