06/01/2007
Findings point to need for more education from agents and brokers
CONTACT: Stephanie Cathcart, 202-314-2056
WASHINGTON, D.C.--The National Federation of Independent Business, the nation's leading small-business advocacy group, today released its health savings account research measuring small-business owners' attitudes and knowledge of HSAs. The survey of small-business owners indicated a need for education and information on HSAs from their insurance brokers and agents.
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William "Denny" Dennis, NFIB senior research fellow, at NFIB's health-care briefing on Capitol Hill May 21, 2007. |
"HSAs are offered by 11 percent of small employers and nearly half of employers are knowledgeable about them. The largest of the firms surveyed were most aware of the HSA options available to them, making it easier to introduce these plans," said William Dennis, senior research fellow, NFIB Research Foundation. "There continues to be a need for education among the smallest of employers about HSAs so they may consider them as an option to help decrease costs and increase coverage."
The survey polled employers with five to 249 employees, and found that, while some businesses have reduced costs more than 40 percent by using the accounts versus traditional plans, the level of understanding goes up consistently with a firm's number of employees. Many smaller firms are unlikely to offer HSAs for a number of reasons and researchers determined that some firms, lacking knowledge about the plans, may be unaware of the benefits of them.
Small-business owners rely heavily on information from insurance brokers and agents in their regions when making health insurance decisions. HSA penetration is greatest in the Midwest, where it appears brokers have made a concerted effort to disseminate information. Leveraging this informational resource with small employers could increase HSA penetration overall.
"This research illustrates that a key component to increased use of HSAs is the amount of information available. We see an opportunity for brokers and agents to play a more active role in educating small businesses about HSAs," said Dennis.
Additional highlights from the survey include:
- More than 20 percent of uninsured small employers would prefer an HSA if they decided to offer health insurance
- Nearly 60 percent of members report that their broker presented an HSA option to them; presentation levels were highest in the Midwest and for firms with 50-249 employees
- Nearly 27 percent cite tax savings/pre-tax savings as the most attractive aspect of HSAs, followed by lower costs/premiums/saving money (22 percent), and accumulate funds/carries over/savings account (17.8 percent)
The study, commissioned by NFIB's Research Foundation, was conducted by DSS Research, based in Ft. Worth, TX.
To view the executive summary and complete survey results, please visit www.nfib.com/research.
