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House Committee passes
Condotta’s health savings account bill
Rep. Cary Condotta,
R-Wenatchee, has sponsored a bill to give Washington state employees the
option of using health savings accounts to manage their medical
expenses. House Bill 1383 passed the House Health Care Committee today.
“With most health care
plans it’s the state or the insurance company that decides what will be
covered and by how much,” Condotta said. “Offering HSAs to state
employees will put the fate of their own health care back into their own
hands.”
With HSAs, 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.
Employees use the money in the HSA account to pay for qualified and
routine health care expenses. The list of qualifying medical expenses is
very broad, and includes chiropractic, contact lenses and glasses,
dental, psychiatric care, and surgery.
The HSA program creates an
incentive for employees to become smart health-care consumers because
the money in the account is their own and goes with the employee when he
or she changes jobs. The fund balance carries forward year to year, and
at age 65, money left in the account can be used like a retirement plan
or saved for future medical expenses. HSA contributions are tax
deductible and earn tax-deferred interest.
“Washington has one of the most restrictive insurance markets in the
nation, with 47 mandated types of coverage for every policy,” Condotta
said. “That has created a huge disconnect between what things cost and
the services received. But because of a new federal law allowing for
HSAs, we now have a more flexible, affordable alternative available to
us.
“With HSAs, employees have
the freedom to choose the doctors and specialists they want, and if they
manage their expenses carefully they will get a financial reward. This
is what health care should be. People are rushing to get on board with
HSAs, and it’s time the state did, too.”
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For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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