In his new report on “The Case for Healthcare Freedom,” Rep. Chip Roy (R-TX) argues Congress should make health savings accounts (HSAs) available to more people, raise the money contribution limits, and reduce restrictions on what the money in the accounts can be used for.
“Until Americans control more of their healthcare spending and middlemen like employers, insurers, and hospitals lose their grip, all proposed healthcare “solutions” are smoke and mirrors,” states the report.
Major Reforms Proposed
Roy’s report, released on January 22, proposes increasing the annual contribution limits from $4,300 to $12,000 for individuals and from $8,550 to $24,000 for families, increase catch-up contribution limits for those aged 55-65 from $1,000 to $5,000, and eliminate other restrictions, such as decoupling the plans from high-deductible health insurance and allowing HSAs to purchase plans based on “innovative healthcare models.”
A similar proposal (see opposite page) by health care analysts Joel White, David A. Hyman, and Ge Bai recommends making HSAs easier for gig workers to open and allowing HSAs to be used on direct primary care arrangements. The writers also recommend raising contribution limits above what Roy proposes in his plan.
“Increasing the contribution limit is important, but we need to expand the existing, more narrow, universe of account holders,” White told Health Care News.
Both proposals follow The Heartland Institute’s American Health Care Plan: State Solutions paper in advising states to declare clearly that direct primary care is not insurance, which would open the door for membership fees to qualify as a medical expense in an HSA.
—Staff reports
Internet info:
S.T. Karnick, Matt Dean, Christopher Talgo, “American Health Care Plan: State Solutions,” The Heartland Institute, September 3, 2024: https://heartland.org/opinion/new-heartland-institute-report-the-2024-american-health-care-plan-state-solutions/
AnneMarie Schieber is a research fellow at The Heartland Institute and managing editor of Health Care News, Heartland’s monthly newspaper for health care reform.
