Legislation introduced on Friday by Rep. Michael Burgess (R-Texas) would help combat increasing out-of-pocket healthcare costs by widening access to health savings accounts (HSA).
Under current law, HSAs may only be used with specific health insurance plans and contribution limits are often lower than deductibles. Burgess’s Health Savings Act would make patients more able to chose how their healthcare dollars are spent through broader access to HSAs and higher contribution limits.
“One of the most fundamental criticisms of the president’s health law is that it robs Americans from freedom of choice in their healthcare,” Burgess said. “This bill would be a small but important step towards giving people back those freedoms.”
Under the measure, parents would be able to establish an HSA for their children and claim an after-tax deduction for contributions. The contribution limit would also be increased to match the out-of-pocket limit.
HSAs would also receive bankruptcy protection under the bill, much like retirement accounts.
“I believe that the federal government should not punish someone for going bankrupt by taking away the money he or she has diligently saved for their healthcare,” Burgess said.
Dr. Ben Carson, who Burgess cited as an inspiration for the legislation, said HSAs lead to “personal empowerment.”
“When you control your healthcare dollars, you decide which doctors you see, what care to get and at what price,” Carson said. “Expanding HSAs is not the only solution to saving our healthcare, but it is a big step in the right directions because HSAs put the most important person in control of your healthcare – you.”