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www.connecticare.com
Cromwell, CT, October 6, 2005 ? More than 170 employers and brokers attended an educational forum Monday, at the Crown Plaza, focusing on the future of health care. The Chambers Benefit Centers Leadership Cabinet in association with The Chamber Insurance Trust (CIT) and local Chambers of Commerce presented the informational event.
The future of health care may very well be the adoption and acceptance of Health Savings Accounts (HSAs). According to Dan Perrin, editor of HSA Insider, ?HSAs are making huge inroads in the insurance industry.? But, he cautions, in order to talk about HSAs ?you have to talk about the money.? ?Acceptance rates [of HSAs] increase with employer funding.? Perrin also stressed that education and simplicity are key functions in aiding understanding and adoption. Perrin points to the fact that those HSA plans in which 100% maximum out-of-pocket expenses equal the maximum deductible amounts are currently hot selling plans. And though there is a general misconception that HSA plans are only for the wealthy, Perrin says that nearly one-third of first adopters purchasing HSAs are uninsured or are coming from the individual marketplace.
Paul Philpott, senior vice president and chief marketing officer of ConnectiCare, focused on the issue of affordability and access to health care. Philpott said that the small-group market may be hardest hit in terms of affordability noting that 15% of all small groups that left ConnectiCare did so because they could no longer afford the premium rates of it or any other carrier. To help offset this trend and offer more affordable solutions, ConnectiCare will introduce a line of managed indemnity products in 2006. ?These products will go a long way to answering the question of affordability,? Philpott said. ConnectiCare will also develop a unique suite of managed indemnity products for its business relationship with the Chamber Insurance Trust. Also available in 2006, ConnectiCare?s individual product ConnectiCare® SOLO, will be available to brokers that sell the CIT suite of products.
Keynote speaker Roy Ramthum, special assistant to the President for economic development, spoke to the relevance of HSAs now and in the foreseeable future. ?HSAs are the future of health insurance ? and may in fact be the dominant form of health insurance in the next five to 10 years.?
Ramthum noted that he and other officials are looking for ways to make HSAs more readily available. One way to induce the individual and self-employed market to adopt HSAs may be to allow these individuals to deduct the cost of the premium for these plans on their taxes. Another possibility that Ramthum is considering is to allow plans with higher out-of-pocket limits than the existing statutory limits set on today?s plans.
Ramthum also noted the need to allow individuals to make greater contributions to their plans than current laws allow for. For example, after meeting their deductible, some employees may still have out-of-pocket expenses. One solution may be to allow employees the opportunity to put more into their account to help pay for these expenses. If they don?t use the money it may provide a greater opportunity to save for the future.
Another aspect of HSAs under consideration is to make them more attractive to chronically ill individuals. Out-of-pocket maximums are key factors of health plans for these individuals because once they are met plans cover at 100%. Ramthum points out that many HSA plans have lower out-of-pocket limits than some traditional health plans making them a viable option for these individuals.
Ramthum also says he and other officials are seeking to build greater flexibility into HSA accounts in terms of the use of their funds. Currently employees who lose coverage can use HSA funds to pay for insurance premiums only if they have COBRA or are receiving state or federal unemployment compensation. Ramthum hopes to broaden this so that these individuals can elect to pay for other coverage and not just continuation of coverage services.
Ramthum concluded that ?HSAs are one of the few cornerstones of health care policies going forward and [the government] will continue to look for ways to make them better.?
Additionally, outgoing chief executive officer Marcel ?Gus? Gamache was honored for his 14-year dedication, service and commitment to ConnectiCare?s business relationship with the Chamber Insurance Trust in which the two companies have collaborated to build one of the finest small-business group insurance programs in the region.
About the ConnectiCare Companies:
The ConnectiCare companies are a group of Connecticut-based managed care companies and a member of the HIP Family of Health Plans, serving nearly 245,000 members through ConnectiCare, Inc.; ConnectiCare of Massachusetts, Inc.; ConnectiCare of New York, Inc.; and ConnectiCare Insurance Company, Inc. ConnectiCare, Inc. and ConnectiCare of Massachusetts, Inc. both hold an ?Excellent? Accreditation rating from the National Committee for Quality Assurance (NCQA) for their commercial employer group plans. For more information on ConnectiCare visit www.connecticare.com.
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