A recent report from Kaiser Health News dives into frequently asked questions about health savings accounts (HSAs).
The report suggests that HSAs may be “problematic for low-income families.” Therefore, The Heartland Institute suggests other reforms, paired with the expansion of HSAs, to benefit such individuals. Those reforms, as stated in our Patriot’s Toolbox, include:
- Establishing high risk pools, which provide subsidized comprehensive health insurance to those with serious medical conditions. Such pools are typically funded by combination of state subsidies and tax credits for insurer assessments. Thirty-four states had high-risk pools in 2006.
- Replacing the tax exemption for employer-provided health insurance with a tax credit or personal deduction that can be used to purchase health insurance and make deposits into HSAs.
- Repeal the community rating and guaranteed issue laws, particularly in the individual market, that force the healthy to subsidize the unhealthy, driving many people out of the private insurance market.
- Restricting eligibility for government health insurance programs, such as Medicaid and SCHIP, so that private insureres can sell affordable insurance products to middle-income families that can afford to pay the premiums without public aid.