September 6, 2015


Two Essential Tools for Repairing the ObamaCare Damage : Health-care savings accounts and high-deductible plans empower consumers and will bring down costs. (SCOTT W. ATLAS And  JOHN F. COGAN, Sept. 1, 2015, WSJ)

[A]ny replacement for ObamaCare should include two essential elements: high-deductible insurance coverage and health-savings accounts.

Well-designed high-deductible insurance--in which the individual pays a few thousand dollars for most health-care services before the plan kicks in to cover claims--restores the fundamental purpose of health insurance: to reduce the financial risk of large and unanticipated medical expenses. Health-savings accounts, or HSAs, allow individuals to set aside money tax-free for out-of-pocket expenses, including routine care. These accounts are owned by individuals and are not dependent on their place of employment.

When consumers pay directly for their care, as they would from HSAs, they have an incentive to choose wisely, and to demand that the prices charged by providers become visible. A study by Carnegie Mellon University's Amelia Haviland and colleagues, published in July by the National Bureau of Economic Research, confirmed previous research by these authors (and others) showing that high-deductible plans significantly reduce health spending without later increases in emergency-room visits or hospitalizations. When these high-deductible plans were paired with HSAs, health-care spending reductions averaged at least 15% annually.

High-deductible plans and HSAs continue to grow despite the restrictions in the Affordable Care Act. Last year, according to Devenir Research, the number of HSAs increased by 29% and reached a record high of 14.5 million as of mid-2015. 

Carson: Eliminate Obamacare And Replace It With Health Savings Accounts (Steve Guest, 08/26/2015, Daily Caller)

Dave Ramsey: So, what do you do with Obamacare then?

Ben Carson: Well, we are going to get rid of it, but you can't get rid of it without having a replacement. And the replacement would be health savings accounts that work extremely well everywhere they're utilized. And you look at the people in Singapore, how happy they are, they pay a quarter of what we pay for healthcare. But I would change it to a health savings account over which you have compete control. Like you have control over your savings account, not one that has six bureaucrats in it. And you pay for it with the same the same dollars that we pay for traditional healthcare with, except you wouldn't have to use as many of them. And you give people flexibility so that if you were $500 short for a minor procedure, your wife could give you it out of hers, or your daughter, or your uncle, or your cousin, or your grandfather. It makes every family essentially their own insurance company with no middleman. It gives you enormous flexibility to cover almost anything that comes up. And it also makes every family concerned about each other.

Posted by at September 6, 2015 9:14 AM

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