Allowing Seniors To Invest in Health Savings Accounts Could Reduce Medicare Costs, Editorial Says, USA

Main Category: Seniors / Aging
Article Date: 24 May 2005 - 8:00 PDT

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Allowing seniors to invest Medicare funds in health savings accounts would be a "good start to reducing Medicare's financial woes while helping seniors," a... Washington Times editorial states. J. Patrick Rooney, chair emeritus of Golden Rule Insurance and a proponent of the policy, estimates that Medicare would save $1,260 annually for each beneficiary who opts out of traditional Medicare and instead uses Medicare funds for an HSA and corresponding high-deductible health plan, according to the editorial. If seniors could contribute Medicare funds to HSAs, they likely would not enroll in the Medicare prescription drug benefit and instead would "choose the better coverage that the combination of HSAs and high-deductible insurance can provide." According to the editorial, "HMOs, Medigap insurers, the left and opponents of President Bush's ownership agenda" continue to oppose HSAs for seniors, but the "momentum behind HSAs only seems to be growing." Legislation in the House and Senate would "clear away tax disincentives" for people eligible for HSAs and "maximize their benefits for low-income workers," the editorial states. For reforms that push President Bush's vision of an America where people "'own their own health care,' this would seem to be a winner," the editorial states (Washington Times, 5/21).

"Reprinted with permission from kaisernetwork.org kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.

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