The New Republic Online on Monday examined consumer-driven health care, as a "sluggish" economy and rising health care costs have prompted employers to pass on "some of the increased costs to their employees" through higher deductibles and copayments. President Bush and "a chorus of Republican officials" advocate a consumer-driven system that transfers "workers from a system of comprehensive insurance to one" that provides coverage of "catastrophic" events and requires consumers to "pay for everything else on their own, preferably by using money they've invested" in health savings accounts, the New Republic reports. Proponents of HSAs say the accounts are "the key to ushering in an era of 'consumer-driven health care'" that will encourage patients to "seek out the most effective treatments, the most qualified doctors and the best-run hospitals," according to the New Republic. HSA advocates also say the accounts will help people live healthier lives as they realize the true costs of health care. But there is "reason to wonder" whether such accounts will "really accomplish" those goals because "good information on health care is just not that easy to find," the New Republic reports. In addition, many experts are concerned that "by giving patients so much incentive to be thrifty," HSAs will encourage them forego routine or preventive care, which could lead to costlier health problems in the future, according to the New Republic (Cohn, New Republic Online, 10/31). The New Republic Online also examined the use of consumer-driven health care plans in South Africa, which has used such a system for a decade (Adler, New Republic Online, 10/27).

"Reprinted with permission from kaisernetwork. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at kaisernetwork/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.