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Monday, November 02, 2009

Small Biz Health Care Daily: Health Care Bill and HSAs

In an October 31 Milwaukee Journal Sentinel op-ed, John Torinus noted how many ways that health care reform being considered by Congress is coming up short.

Many of his points are right on target, including the following about health savings accounts:

There is not even token inclusion of the principles of consumerism and individual responsibility in the new House version. Wisconsin's private sector has led the way on high-deductible plans offset by health savings accounts. They've cut costs by 20% to 40% by changing human behavior on health care. That's proven practice.

The survival of such plans in the private sector is in doubt. Their elimination would undo the huge savings made by many companies and by an increasing number of local governments as well. Companies and employees need health savings accounts and flexible spending accounts to survive.

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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