Breaking the cycle.

The article "Healthy Alternatives" in the July 2004 issue of ASSOCIATION MANAGEMENT was very informative and conveyed a subtle message that should be screamed from the rooftops: Consumer-driven health insurance plans can break the cycle that results in excessive premium increases.

Business Resource Services has been promoting medical savings account (now health savings accounts) since 2002, and we have seen dramatic program growth within our HSA product. [Health savings accounts allow] companies to stabilize insurance costs while delivering more benefits to employees. And because the account has no use-it-or-lose-it provision, employees have a vested interest in controlling costs. This results in a significant reduction in individuals reaching their deductibles and receiving payments from the insurance company. Lower claims result in lower renewal rates. Our HSA program only had a 1 percent premium increase for 2004. By aligning the incentives for employers, employees, doctors, and insurance companies, everyone benefits.

The article raises an interesting point, though. There may indeed be an inherent resistance from the brokerage community to fully promote the product; after all, it is a more complicated and labor-intensive product for brokers during the start-up. And premiums are lower, so compensation is less.

I strongly encourage associations to become leaders in this arena and build a grassroots approach to health reform that will benefit their members, and I hope contribute to a greater good.

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Thomas M. McKeown Executive Director, Business Resource Services, Burlington, Vermont; [e-mail]

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