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Condotta bill would
authorize health savings accounts
for state employees
Washington state employees
would have the option of using a health savings account to manage
medical expenses under a bill introduced today by
Rep. Cary Condotta,
R-East Wenatchee.
Health savings accounts (HSAs) are savings accounts individuals and
families can use to pay for qualified and routine health care expenses.
Employers – in this case, the state of Washington – deposit a portion of
the money formerly spent on the employee’s health insurance into a
health savings account. The other portion is used to buy a low-cost,
high-deductible policy that covers the employee in the event of a major
medical expense.
HSAs create an incentive for employees to become smart health-care
consumers because they get to keep the money that is left over in the
account. Money left in the account carries forward from year to year for
medical expenses. At age 65, money left in the account can be used like
a retirement plan, or still saved for future medical expenses.
“Offering health savings accounts to public employees is a great idea
for many reasons,” Condotta said. “It would save the state money, give
employees more freedom to choose doctors and specialists, and offer a
tangible, financial reward for employees who carefully manage their
health care costs. It also cares fully for those who experience major
medical problems.”
Health savings account benefits include:
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Employees have the
power to choose the health care professionals and services they like
best rather than living with the extensive restrictions imposed by
many HMO-type plans.
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The state saves money
by purchasing a lower-cost, high-deductible insurance plan for these
employees.
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Employees have another
retirement savings option.
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Employees experience a
tax savings, because HSA contributions are tax deductible and earn
tax-deferred interest.
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The list of qualifying
medical expenses payable through the HSA is very broad, and includes
chiropractic, contact lenses and glasses, dental, psychiatric care,
and surgery.
“People are tired of
experiencing such tightly managed care and not being able to choose
their own doctors or see a specialist,” Condotta said. “Creating health
savings accounts would give employees flexibility and choice. They’d
also get to own the savings left over. This idea is really taking off in
other states, and it’s time for Washington to get on board.”
HB 3192 is now in the House Health Care Committee.
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For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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