SBE Council Notes Importance of Protecting HSAs

The Small Business & Entrepreneurship Council (SBE Council) today highlighted the importance of health savings accounts (HSAs) in the health care marketplace, including for small businesses, and warned that ObamaCare could place these consumer-friendly health coverage options in peril.

SBE Council President & CEO Karen Kerrigan noted: "The growing importance and popularity of HSAs were reinforced by the latest data offered from America's Health Insurance Plans, which reported that over 10 million Americans were covered by HSA-high deductible health plan products in January 2010. That was a 25 percent jump from January 2009."

According to AHIP, HSAs were up by 17 percent in the individual market, by 22 percent in small-group coverage, and by 33 percent in large-group coverage. As of January 2010, there were 2.053 million people covered by HSAs in the individual market, and 2.97 million in the small-group market. Just over the past three years, HSA enrollment has more than doubled (up by 121 percent). During that period, the increase in the small-group market registered a 181 percent.

SBE chief economist Raymond J. Keating observed: "Obviously, the growth of HSAs in the marketplace reflects their value to both individuals and small businesses. For the economy in general, HSAs are a big plus as the traditional buyer-seller relationship is re-established - with both health care providers and consumers concerned about costs, utilization and providing the proper care - while the true role of insurance is emphasized, as each HSA is linked to an HDHP, thereby protecting individuals against large and/or unforeseen costs. This is how the insurance market should work."

Kerrigan warned: "Unfortunately, ObamaCare works against HSAs. For example, starting in 2011, over-the-counter purchases and other preventative care are excluded from the list of items that consumers can purchase using HSA dollars. Even more troubling, however, is that HSAs eventually may not be considered 'acceptable coverage' under regulations that federal government bureaucrats will soon write up under the new health care bill. Quite frankly, ObamaCare works against HSAs."

Given the importance of HSAs to entrepreneurs, small businesses and consumers, SBE Council has launched a "Protect HSAs" effort. Visit SBE Council's website at http://www.sbecouncil.org/ for more information.