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Condotta’s health savings
account bill passes House
Washington state employees
would have the option of using health savings accounts under House Bill
1383, which passed the House of Representatives today.
Rep. Cary Condotta, R-Wenatchee, sponsored the bill.
“Giving people a financial stake in their health care helps them more
carefully manage their medical expenses,” Condotta said. “That’s just
what HSAs do. They empower people to shop around for the best, most
cost-effective health care options and rewards them for making smart
health care decisions. Small businesses in our state are using them
because they work, but state employees don’t have the same option. It’s
time to give them access to this successful program.”
Created as part of the 2003 federal Medicare bill, HSAs are savings
accounts individuals and families can use 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. Employers deposit a portion of
the money formerly spent on the employee’s health insurance into the
health savings account, and 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.
Health savings account
contributions are tax deductible and earn tax-deferred interest.
Employees can take the HSA account along when they change jobs, because
the money in the account is their own.
The funds carry forward
from year to year. At age 65 it can be used like a retirement plan or
saved for future medical expenses.
“We’ve heard a lot of talk
lately, especially on the federal level, that we should be giving people
additional ways to save money for retirement,” Condotta remarked. “HSAs
offer another saving option. They also give patients the freedom to see
the health care providers they want, rather than going through a
gate-keeper, and reward people for carefully managing their health care
expenses. I am pleased we are one step closer to this new option that
will provide a cost savings to both state employees and the state of
Washington.”
House Bill 1383 now moves
to the Senate for consideration.
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For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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