Remove the HSA Ceiling to Improve Health Care – By Jessica Dobrinsky (Real Clear Policy) / Jan 23, 2023
According to the Centers for Medicare and Medicaid services, the health share of the economy is projected to rise from 17.7 percent in 2018 to 19.7 percent in 2028. Yet the average life span has only grown two years since 2000. The U.S. is a global outlier. While we spend more than any other nation on health, and more than three times other wealthy nations, our life expectancy is shorter than countries that spend far less. Considering our expenditures are higher than any other nation with less than desirable results, we should begin to look at new avenues for health reform by examining health care regulations rather than continually increasing spending.
Unsurprisingly, politicians hope to alleviate this health dilemma by, incorrectly, relying on “fat taxes,” banning snack cakes, and crouching closer and closer to the implementation of horrific socialized medicine. Rather than enacting such policies that prioritize top-down solutions, government should work to encourage personal responsibility for our well-being. To do this, policymakers should increase access to health savings accounts (HSA).
HSAs allow Americans to take control of their own health care. An HSA is operationally comparable to a 401(k). Individuals can set aside money from their salary on a pre-tax basis to pay for qualifying medical expenses, including deductibles and prescriptions. And, unlike flexible spending accounts, there is no “use it or lose it” policy. HSAs naturally incentivize prospective patients to be more cautious with their dollar and encourage patient-led health. Nationally, HSA account balances exceed $100 billion. But, alas, due to regulatory constraints, 90% of Americans have no access to an HSA.
