Monday, January 31, 2005
According to an article in today's LATimes, the administration is planning to move swiftly to approve more Health Savings Accounts (HSAs) and put an end to the current employer-provider health insurance model. The LATimes reports,
"Emboldened by their success at the polls, the Bush administration and Republican leaders in Congress believe they have a new opportunity to move the nation away from the system of employer-provided health insurance that has covered most working Americans for the last half-century.
In its place, they want to erect a system in which workers — instead of looking to employers for health insurance — would take personal responsibility for protecting themselves and their families: They would buy high-deductible "catastrophic" insurance policies to cover major medical needs, then pay routine costs with money set aside in tax-sheltered health savings accounts."
The article provides a good introductory overview to HSAs and some of the pros and cons of the growing push to switch to this form of insurance for all Americans. I am not a fan of the accounts and wasn't aware that they had become so popular with certain segments of society. The LATimes states that the adminstration is farther along in its planning for HSAs than it is on social security reform so we may be seeing proposals for change in the near future. [bm]