A new BearingPoint study says the implementation of universal healthcare in the United States could increase the use of healthcare savings accounts even beyond original projections. However, they warn that this will not come without changes to current technologies.
Current projections for 2012 indicate there will be more than 20 million new HSA accounts with more than $200 billion in assets, which would account for 30 percent of the insured population. BearingPoint predicts this will lead to a greater need for streamlined methods of information access, spending, savings and health financial planning.
Universal coverage has been the mostly widely touted health proposal in each presidential candidate's platform. California and Massachusetts now require coverage for almost all residents, through mandates or incentives for insurance, usually supplied through employers.
According to BearingPoint, the methods being used by Massachusetts and California could increase adoption of HDHPs, or "low-premium" health plans, as a primary coverage vehicle, enabling more people to open HSAs.
Because individual HSA accounts have increased to more than 20 million and the growing trend of consumers paying out-of-pocket for medical expenditures is driving financial institutions to evolve, more insurers, banks, investment managers and card companies are seeking out new ways to serve employers and consumers in their new healthcare needs, BearingPoint consultants say.
"Universal coverage programs could significantly change the way Americans navigate and manage healthcare, leading consumers to require new financial accounts and tools to effectively spend/save/invest funds related to healthcare services," said Kirsten Trusko, of BearingPoint's Banking Insurance Group. "As they enter unfamiliar territory, financial institutions across the country will depend on new platforms and systems to support the products, services and tools developed for consumers."
Among BearingPoint's predictions:
• Insurance companies are currently spending 30 percent of revenue on administration due to outdated systems. In order to add 40 million uninsured Americans to the commercial health insurance infrastructure, health plan providers must update their systems.
• An increase in the insured will reduce emergency room use and could result in a reduction of write-offs for accounts receivable. Additionally, the increased "out-of-pocket" payments associated with traditional and HDHP plans could raise the need for real-time access to eligibility, co-pay, deductible status and pricing at the point of care.
• With the potential for more than $200 billion in new consumer deposits by 2012, investment banks will need transactional capabilities beyond traditional investment platforms.
• In the coming years, 87 percent of employers will offer consumer-directed healthcare accounts (including HSAs), with half of the HSA employers contributing money into these accounts. This will mean consumers will need tools to understand and compare quality and costs for healthcare services as well as plan what they will need to save/spend/invest on healthcare.
• According to the National Coalition for Healthcare, by 2012 healthcare spending will have reached $4 trillion a year. This will require greater security and fraud protection.