Outlines Policy Recommendations for Next Generation of HSAs
WASHINGTON, June 28 /PRNewswire/ -- Karen Ignagni, President and CEO of
America's Health Insurance Plans (AHIP) today outlined a series of common-
sense policy recommendations to expand access to health savings accounts
(HSAs).
(Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO )
Testifying before the House Committee on Ways and Means, Ignagni said
that HSA-eligible, high-deductible health plans (HDHPs) have quickly become
valued health coverage options for consumers and employers and urged
Congress to take the lead in facilitating the next generation of HSAs.
"HSAs are helping a substantial number of previously uninsured
consumers purchase coverage, accumulate savings for their future medical
needs, and access preventive care services. HSAs also are enabling many
small employers to offer health coverage to their employees for the first
time," Ignagni said.
"Now is the time for Congress to build on this track record by ensuring
that HSAs can meet the needs of those with chronic conditions, leveling the
playing field for those seeking coverage in the individual market, and
rewriting the rules that prohibit Medicare beneficiaries and many veterans
from even considering HSAs as an option," said Ignagni.
Ignagni also described a recent AHIP member census which found that
3,168,000 people were covered by HSA-eligible HDHPs as of January 2006. The
census found that 31 percent of those purchasing these plans in the
individual market were previously uninsured, and that one third of policies
purchased in the small group market were purchased by companies that
previously did not offer coverage.
AHIP's Policy Recommendations to Create the Next Generation of HSAs
Expanding Coverage for the Chronically Ill
* Allow employers to assist employees or their family members who suffer
from chronic conditions by permitting increased contributions into the
HSAs of individuals who are enrolled in disease management or care
coordination programs.
* Allow HDHPs to cover certain prescription drugs used to treat chronic
conditions without the patient first being required to satisfy the
minimum annual deductible on the HDHP.
Encouraging Families to Participate in HSAs
* Allow individuals to establish an HSA if their spouse has a Flexible
Spending Arrangement (FSA).
* Allow HDHPs for family HSAs to include separate deductibles, also known
as "embedded deductibles," for individual family members below the
overall family deductible.
Promoting Tax Parity and a Level Playing Field for Individuals
* Enact an above-the-line tax deduction for all health insurance coverage,
including HSA-compatible health plans, purchased in the individual
market.
* Enact tax credits to help low-income persons purchase HSA-compatible
health plans and other types of health insurance.
* Increase HSA contribution limits to allow consumers to contribute an
amount equal to the out-of-pocket limits of their HDHP.
Expanding Access to Early Retirees, Seniors and Veterans
* Allow early retirees (ages 55-64) to use HSA funds to purchase retiree
health coverage.
* Allow seniors to use HSA funds to purchase Medigap coverage to
complement Medicare.
* Allow veterans who use Veterans Administration (VA) health care
facilities to contribute money to an HSA. Under current law, any
veteran who has accessed the Veterans Administration medical system
within the past three months is prohibited from putting money into an
HSA. This restriction hurts veterans -- especially returning service
personnel who have service-related injuries.
Giving Employers More Flexibility
* Allow employers to combine HSAs with FSAs or Health Reimbursement
Arrangements (HRAs) to cover medical expenses below the HDHP's
deductible.
* Allow individuals with unspent funds in employer-based FSAs or HRAs to
transfer these funds into their HSAs.
Easing Administrative Burdens
* Give employees the opportunity to make the full annual contribution when
they enroll during the middle of a plan year, or permit the employer to
charge a smaller deductible.
* Announce the annual adjustment of deductible amounts, out-of-pocket
expense limits, and contribution limits by June 1 each year to give
employers sufficient time to determine their plan offerings for the new
year.
* Extend to April 15 of the second year the deadline to set up an HSA
account once a consumer signs up for a HDHP to allow for payments to be
made for health costs incurred during the previous year.
To view the full testimony click on:
http://www.ahip.org/content/fileviewer.aspx?docid=16886&linkid=145116
America's Health Insurance Plans - Providing Health Benefits to More
Than 200 Million Americans
SOURCE America's Health Insurance Plans
 back to top
Related links:
http://www.ahip.org/
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
CONTACT:
Mohit Ghose of America's Health Insurance
Plans, +1-202-778-8494
|
