Suppose Pearce is at present in good health. Which factor most favors

QUESTION

Suppose Pearce is at present in good health. Which factor most favors creating a health savings account (HSA) to ease the burden on the employee?

A) Pearce at present does not have savings that would pay for a major medical emergency.
B) HSA-eligible health plans typically have lower premiums.
C) The HMO previously used by Lighthouse did not include the physician that Pearce felt most comfortable seeing.
D) If Pearce does choose to leave Lighthouse, the HSA is not forfeited but stays with him.
E) With an HSA, Pearce will have to be more careful about spending excess money for health care.

ANSWER

Answer: B
Explanation: B) The most significant savings in premiums occur when employees shift to a health savings account. So Choice B is correct: this option would also save the employee both in taxes and in premiums. Choice A correctly implies that an HSA would allow Pearce to let the savings accrue for future medical expenses, and Choice D adds that these savings will be his to use whether he stays with Lighthouse or not, but neither option deals with the current issue: how to ease the burden caused by accelerating premiums. Choice E is a disadvantage rather than an advantage, and Choice C is irrelevant, as an HSA can be used for any provider.