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For Immediate Release
February 13, 2006

Setting the Record Straight: The Washington Post's Sebastian Mallaby on Health Savings Accounts

      Setting the Record Straight

Setting The Record Straight On The Benefits Of Health Savings Accounts (HSAs).

Mallaby Claims That HSAs Are For "Rich People" And "Healthy People." "The administration is proposing a new kind of 401(k), and using it as an inducement to quit low-deductible insurance. Rich people, who gain most from the tax breaks on saving, will be first to sign on; healthy people, who subsidize sicker people in company health plans, will be right behind them." (Sebastian Mallaby, Op-Ed, "Ownership Society Redux," The Washington Post, 2/13/06)

But Studies Have Shown That HSAs Have Broad Appeal.

Mallaby Claims That HSA High-Deductible Insurance Policies Do Not Provide Comprehensive Care. "In practice, probably less than half of all health spending outside Medicaid and Medicare would be affected by the new consumer-driven discipline. Many hospital stays cost more than any deductible, so consumers would have no incentive to bargain; emergency-room patients aren't in a fit state to negotiate prices with their doctors." (Sebastian Mallaby, Op-Ed, "Ownership Society Redux," The Washington Post, 2/13/06)

But Studies Have Shown That HSAs Provide Comprehensive Care At Lower Premiums.

Mallaby Says Americans Would Be Better Off In Traditional Corporate Health Plans. "And health savings accounts pose a more formidable threat to traditional corporate health plans than personal accounts posed to Social Security. Market forces are already dislodging company health plans; an extra shove could cause an avalanche." (Sebastian Mallaby, Op-Ed, "Ownership Society Redux," The Washington Post, 2/13/06)

But Studies Provide No Evidence That Employers Are Dropping Coverage.

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