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Health savings accounts slow to catch on in Magnolia State.

Article Excerpt
Despite their benefits that include lower premium costs for health insurance and the potential to decrease overall medical spending, health savings accounts (HSAs) don't appear to be gaining significant acceptance in the Mississippi marketplace.

HSAs combine a tax-free savings account for medical expenses with a high-deductible health insurance plan. In addition to tax advantages, HSAs have been touted for their potential to help reduce healthcare inflation because participants have a greater motive for careful spending since it is their money at stake.

"HSAs haven't taken off like some people expected them to," said Brad Robertson, vice president, Renasant Insurance, Tupelo. "The healthcare crisis isn't solved by the HSA. It is an option, but it is not a solution. I don't know what is."

Robertson said his experience is that, first of all, many employees don't understand HSAs. Educating people about the benefits of HSAs will take time. But perhaps more important is the mindset. Faced with the choice of a HSA that doesn't pay any benefits until a high deductible has been paid, and a plan that might cost 10 to 15% more but has benefits like co-pays for doctor visits and medications, most people are opting for the more traditional plans.

"When you propose a HSA to most...

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