Earlier this week, the Wall Street Journal published an editorial piece about the skyrocketing cost of health benefits for government employees. The editorial cites a new study by the Manhattan Institute that shows the growth in health care costs for local and state governments outpacing private insurance by 20% over the past 15 years.
The Wall Street Journal points to consumer-driven health plans, including HSA health plans, as a solution to bring down health care costs for state and local governments. As evidence, the editorial points to the experience of Indiana, which began offering HSA plans to state employees in 2006. According to a Mercer consulting study, consumer-driven plans in 2010 saved as much as $23 million for Indiana taxpayers and an additional $8 million for employees.
Here are a few excerpts from the editorial:
Read the editorial in its entirety here (subscription is required).