• Bill Would Provide Tax Incentives to HSA Enrollees
• Recent Polls Find Americans Favor Transparency and Want More Health Savings Options
• Member Poll: Cover the Uninsured

Bill Would Provide Tax Incentives to HSA Enrollees

Last week Rep. Eric Cantor, R-Va., introduced the Tax-Free Health Savings Act, which would provide tax incentives for premium costs on high-deductible health insurance plans and contributions to health savings accounts (HSAs). “For years, people in Washington have been looking for a solution to achieve universal health coverage,” Cantor said. “Rather than forcing a one-size-fits-all government program on workers and families, the Tax-Free Health Savings Act empowers individuals with making their own health care decisions.” H.R. 5262 will help to make HSAs a more affordable health coverage option by: Increasing HSA contribution limits. Making premiums for HSA-compatible insurance tax-deductible. Providing a low-income tax credit up to $3,000. Allowing employers to make greater HSA contributions for chronically ill employees. The NASE remains a proponent of HSAs, which are used in conjunction with high-deductible insurance policies. Instead of paying a high monthly premium for insurance, a low premium, high-deductible health plan is purchased. The HSA then acts as an investment account from which people can withdraw money tax-free for medical care. Let your legislators know how you feel about the Tax-Free Health Savings Act by visiting the NASE online Legislative Action Center at http://advocacy.NASE.org. Recent Polls Find Americans Favor Transparency and Want More Health Savings Options Eighty-four percent of Americans think hospitals, doctors and pharmacies should publish their prices for all goods and services, according to a recent poll commissioned by the Council for Affordable Health Insurance. Additionally, 79 percent of respondents said they were likely to shop around for the best prices if they knew the prices. Enter health savings accounts (HSAs). Money deposited into HSAs can be used to pay for medical needs that a high-deductible health insurance plan does not cover. With HSAs, individuals may have more of an incentive to shop around for prices because they will be paying out of this account. Another poll, commissioned by the HSA Coalition, found that three-quarters of Americans support Congressional action to boost the maximum contribution amount to HSAs and 69 percent would back legislation that would allow HSA participants to pay for their insurance premiums using money in their plans. When respondents were informed that nearly one-third of those purchasing high-deductible plans used in conjunction with an HSA in 2005 were uninsured, 56 percent said they would back a law to give low-income, uninsured Americans money to establish an HSA. Nearly 80 percent of respondents support a refundable tax credit for the self-employed to purchase an HSA as well as 84 percent of respondents who support a tax exemption for individuals to purchase a health plan when employers do not provide it. “Health savings accounts with high-deductible health insurance plans provide an alternative way to finance health insurance, something no one should go without in this country,” said Kristie Darien, executive director of the NASE legislative office. For more information on the NASE’s legislative priorities, visit http://advocacy.NASE.org. Member Poll: Cover the Uninsured The NASE joins a diverse group of national organizations in support of this year’s Cover the Uninsured Week, May 1-8th. Currently, 46 million Americans have no health insurance, with 60 percent of uninsured Americans representing owners, employees or dependents of those working in small business. Let the NASE know your opinions on this issue by visiting the MyNASE Web site at http://my.NASE.org/. Log in to your free MyNASE Web account. If you have not set up an account, you can do so at http://my.NASE.org/ with your member number.