Medical Savings Accounts
Mr. Speaker, today I rise to talk about an issue that everyone should be aware of and I think more and more Americans are becoming concerned about and that is the rising cost of health care here in the United States. Some of the estimates…
Mr. Speaker, today I rise to talk about an issue that everyone should be aware of and I think more and more Americans are becoming concerned about and that is the rising cost of health care here in the United States. Some of the estimates this year, and we are talking to small businesspeople in my district, they are looking at increases in the cost of their health care of anywhere from 10 percent to 40 percent and some even more than that. One of the ideas that has been around for a number of years in terms of controlling the costs of health care in the United States is the concept of medical savings accounts. This is a plan that really goes back a long ways. As a matter of fact, in my district where we have an awful lot of farm families, they in effect have had medical savings accounts for a very long time. What they do is they essentially use their checking account as the medical savings account, but the principle is relatively simple and that is where people can put money away, either through their employer or individually, into a medical savings account to pay those ongoing medical bills. At the same time, they buy a catastrophic insurance policy that will pay those catastrophic expenses if they should come down with cancer, if they should need a major surgery, something like that. Catastrophic insurance is relatively inexpensive. And so in the last several years we have allowed more and more of the employers to do these medical savings accounts, to set up these programs on a pretax basis so that they get the advantages of the Tax Code. But there was one major, glaring error and omission from the legislation we passed in the past here in the Congress and that is that public employees could not participate in these. And so I have been talking to my public employees back in Minnesota. They would very much like to participate in medical savings accounts for a whole variety of reasons, one of which is it is a way that they can begin to save money for long-term care, because we are now beginning to
realize we are all getting older. I happen to be 52 years old. I was born in 1951. There were more babies born in 1951 than any other year, we are the peak of the baby boomers, and we are looking at this thing and saying, are there ways we can begin to put money away for long-term care. One of the ways you can do that is with medical savings accounts. But it is a glaring omission and it is terribly unfair to say that private employees in the private markets can go ahead and have access to these medical savings accounts but public employees cannot.
And so today I am introducing along with my colleagues the gentleman from Minnesota (Mr. Sabo), the gentleman from Minnesota (Mr. Peterson), the gentleman from Minnesota (Mr. Ramstad), the gentleman from Minnesota (Mr. Kennedy), the gentlewoman from Minnesota (Ms. McCollum) and the gentleman from Minnesota (Mr. Kline) the Minnesota MSA Empowerment Act of 2003. Essentially what this bill will do is allow public employees on a pilot program basis to have access to the same kind of programs that private employees have access to. It is a very good bill. It is a way for us to actually find out just how well these MSAs will work, especially with public employees. I am confident that they will work if they are given a chance. This is a pilot program just for Minnesota to demonstrate that MSAs will work for the consumer, they will work to help reduce the cost of health care and ultimately make it possible so people can begin to set aside dollars long-term for long- term care.
This is a good piece of legislation. I hope the people of the appropriate policy committees will give it a fairing hearing and if they will I am confident that ultimately this will become law. Mr. Speaker, I hope my colleagues will join me in support of this important legislation.