Question

1. Health savings accounts (HSAs) allow consumers to purchase a high- deductible health insurance plan and pay for the medical expenditures they incur prior to satisfying the deductible with tax-sheltered health savings. Advocates argue that this model gives consumers a strong incentive to shop for lower-priced, high-value medical care. Based on the analysis of selective contracting, under what conditions would consumers be successful in negotiating lower provider prices?

2. Medicaid programs have adopted managed care for the provision of care to some of their covered populations. Under what circumstances would you expect a Medicaid managed care plan to save money for a state Medicaid agency?

Answer 1

1 ANSWER :

HEALTH SAVINGS ACCOUNTS (HSAs) : Health savings account is defined as tax advantaged medical savings account which is available in United States for tax payers, who included in reducing high deduct health plans. It is also referred as a personal savings account.

Following the below methods consumers can be successful in negotiating lower provider prices :

* FOLLOW TAX DEDUCTIBLE CONTRIBUTION: These contributions re made with deduction of after tax money from gross income on the return of tax, which helps to pay less taxes at the end of the year.

* TAX FREE FROM WITHDRAWALS : Withdrawal from saving account is not acceptable in all the cases for federal income taxes if they used for suitable medical expenses

* EARNINGS ARE TAX FREE : Persons interest, or any other earnings on assets in account are free from tax, so that they can claim for high value medical care services,

By following the above measures consumers can avail in getting medical services at a lower cost.

2. ANSWER :

MEDICAID PROGRAMS : Medicaid programs are the one which provide medical health coverage to many people of America including adults, old age, pregnant mothers, disabled persons . This program is going to funded by states and their federal Governments.

Medicaid managed care plan to save money : As medicaid managed care plan defined to provide medical health coverage to the covered population. Under managed care organization.(MCO) Medical services can be availed to save money on a higher medical claims.