HSAs won't do the job, says Bloomberg columnist

Columnist John Berry at Bloomberg News analyzes why the Health Savings Accounts being pushed by the Bush administration won't have the desired effect on healthcare costs. Using a recent Health Affairs paper as a springboard, he interviews the authors and concludes that for many, the accounts wouldn't increase cost-sharing and might actually reduce it in some cases. The flaw is the tax-deductibility of HSA money, which can mean that the consumer's total liability is less in after-tax dollars than with the usual structure of co-pays and-out of -pocket limits for standard health plans.

For the full analysis:
- check out the column