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The Hill: Study — Market-driven plans could lower healthcare costs

POSTED BY Galen Institute on May 8, 2012.

The wide adoption of market-based healthcare plans like health savings accounts (HSAs) could significantly lower U.S. healthcare costs in the short run, according to a new study from RAND Corp.

The question remains whether the plans’ cutbacks in care would lead to poorer health and higher costs later, study authors said.

The RAND study was the most comprehensive to date looking at consumer-directed health plans, which account for about 13 percent of all healthcare coverage provided by employers.

The study concluded that if the plans’ market share rose to 50 percent, healthcare costs in the United States could drop by $57 billion annually.

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