THE DEAL IS JUST SITTING THERE:

A Fair Health Fix (Michael Barone, 2/12/07, Real Clear Politics)

[Oregon's Democratic Sen. Ron Wyden] notes that government single-payer health insurance -- the goal of some senior liberal Democrats in Congress -- was rejected by the voters of his liberal state by a four-to-one margin. He also notes that we don't have employer-provided auto insurance -- we buy that out of after-tax earnings. He argues that people should be able to buy health insurance as members of Congress and federal employees do, from an array of choices offered by private insurers.

He's looking to make something of a political deal. Republicans would get Bush's standard deduction and a private insurance market in which consumers would have incentives to hold down costs. In return, Democrats would get universal coverage, with subsidies for low earners to pay for coverage. As John Goodman of the free market National Center for Policy Analysis points out, additional revenues from those with policies worth more than $15,000 could be used to subsidize low-earners.

Wyden has been talking with Republican senators, especially fellow members of the Finance Committee, and says he has been getting positive reactions. As for Democrats, those who seek more government provision of healthcare will probably be uninterested. But some may be affected by the apparent success of the Medicare Part D prescription drug benefit. Many Democrats believed that seniors would have a hard time choosing policies from an array of choices and that they would end up being gouged by private insurers. But polls indicate that the vast majority of seniors are pleased with the results, and the cost of premiums -- and costs to the government -- have come in lower than experts predicted.

One of the prime lessons of the last third of the 20th century has been proved once again: Markets work -- and more quickly than government mandates. It took 38 years to get a prescription drug benefit in Medicare. In contrast, in the parts of the healthcare sector where market forces are free to work, technology improvements can result in lower costs, as with Lasik eye surgery or cosmetic surgery. Bush's proposal, or Wyden's version, would give markets more room.

Health Savings Accounts let unspent money grow (TERRY SAVAGE, 2/12/07, Chicago Sun-Times)

If every penny you spent on health care came out of your own pocket, two things would happen. First, you'd be more interested and involved in your treatment, questioning the cost and necessity for every medical procedure. And, second, you'd take better care of your health, knowing that being overweight, or smoking, or not exercising is bound to be very costly to your own financial future.

That's the appeal of Health Savings Accounts. They let people keep the money they don't spend on medical costs -- in an account that grows tax-deferred every year to pay for future medical expenses. And the money they do spend for medical expenses is paid out of the account on a pre-tax basis.

The account is combined with a high-deductible insurance policy that costs less than traditional policies, but covers major medical expenses. Employers may use some of that savings to contribute to workers' HSAs.

In 2007, individuals can set aside a tax-deductible contribution to the HSA of up to $2,850, or $5,650 for a family. (Those age 55 and older can contribute an extra $800.)

But you don't have to be an employee of a big company to access a Health Savings Account, and the related high-deductible insurance policy. Just go online to www.ehealthinsurance.com, and click on the option to find Health Savings Accounts. Or you can call (800) 977-8860.

And by putting those low income and no income folk into HSA's you make them owners over time.

Posted by Orrin Judd at February 12, 2007 9:34 AM