Gail Shearer’s claim that medical savings accounts (MSAs) are not making a dent in the ranks of the uninsured is totally untrue (“Medical savings accounts falling short of goal; easier access urged,” News, Oct. 1). It’s clear Ms. Shearer and her Consumers Union activist group chose to turn a blind eye to the obvious fact that a full one-third of MSA policies have been opened by the previously uninsured. This figure is up from 17 percent in 1997.
In other forums, Ms. Shearer has argued that MSAs are raiding the insurance pool, a notion that’s preposterous. The rising cost of health care, double-digit premium increases and the fact that Americans have been stripped of their personal freedom to go to the medical providers of their choice are the culprits driving up the ranks of the uninsured and depleting the pool.
A new report from the census bureau shows that 16.1 percent of Americans lack coverage. A closer look reveals a disturbing new trend, with a dramatic rise in upper-income households dropping out of the system. They’d prefer to take health-care risk in their own hands and, in the process, sacrifice any tax breaks. It’s a statement on our current system that Americans want control of their health-care investment and to reclaim the freedom to decide when, where and how their medical dollars will be spent.
MSAs were designed to put control of health care back in the hands of the patient. They work with a high deductible policy, which means premiums paid to insurance companies are lower. Money saved is invested in an IRA-like account in that contributions are fully deductible, with the added benefit that funds can be withdrawn at any time tax- and penalty-free to cover medical expenses. Funds not used at year’s end remain in the patient’s control–they simply roll over and earn tax-deferred interest over the lifetime of the MSA, creating a long-term care account or savings for retirement.
Now is the time to urge our senators to lift the heavy restrictions imposed on the program, available only to the self-employed and small businesses with 50 or fewer employees, and open up MSAs to all Americans.
