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Condotta bill authorizing
health savings accounts heads to governor’s desk
Legislation allowing state
employees to manage their medical expenses using a health savings
account (HSA) today passed out of Senate 43-4 today and is now awaiting
the governor’s signature.
Rep. Cary Condotta, R-East Wenatchee, is the
prime sponsor of the bill.
“I am excited to see my bill pass the Senate this year. I hope the
governor will sign it into law quickly to give our state’s consumers
much-needed additional health insurance options,” said Condotta. “We’ve
spent a lot of time this session discussing the rising cost of health
care. House Bill 1383 is the only health care solution passed this year
that will actually cut the cost of health care in the state. It’s past
time to enact this legislation.”
He also noted as more and more private sector employers offer HSAs to
their employees, it only makes sense the Senate pass his bill to allow
the public sector to take advantage of this innovative, cost-saving
option if they choose.
“It’s one more option for
families when they consider their health care choices,” Condotta said.
HSAs, authorized as part of the Medicare bill signed by President Bush
in 2003, are savings accounts individuals and families can use to pay
for health care expenses. Employers – in the case of my bill is the
state of Washington – may deposit a portion
of the money formerly spent on an employee’s health care premiums into a
health savings account. The remaining portion is used to purchase a
low-cost, high deductible policy that covers the employee in the event
of a major medical expense.
“Making HSAs available to public-sector employees will save them money,
offer a financial reward for employees who manage their costs and give
the consumer the personal choice of a doctors and specialists,” said
Condotta.
HSAs, he said, offer a secure safety net for people who experience major
medical problems and that HB 1383 is a win for offering more health care
choices in Washington’s stagnant health care marketplace. He added that
the current “gatekeeper” approach that stymies consumers from seeing
their doctor or specialist of choice is a complaint he hears often and
that HSAs tackle that issue by allowing consumers to choose their own
doctor.
“Health savings accounts are one solution to allow for flexibility and
choice and it promotes ownership of a very valuable health care plan,”
said Condotta. “We can pile people on the state health care system or
punish big companies, but that’s not going to curb any rise in insurance
rates. HSAs are a simple and meaningful way to cut health care costs.”
Sen. Linda Evans Parlette, who introduced a companion HSA measure (SSB
6130) this year, was pleased to see the Legislature pass Condotta’s
bill.
“There was some good teamwork in getting this bill through the
Legislature,” said Parlette, R-Wenatchee. “Health savings accounts
should be an option for state employees. The great thing about these
accounts compared to flexible savings accounts is it’s not ‘use it or
lose it.’ That means you don’t have to spend everything by the end of
the year. If you have money in your account, you can save it and then
use it in the next year. Another advantage of HSAs is their portability.
Sometimes people are forced to stay in a job because of health
insurance. If they have a health savings account, they can take the
monies saved to their next job.”
Condotta added that HSAs provide a more hands-on approach to health care
and would move the state health care system back to a true insurance
system which has time-tested success in the state. And, he says, because
the person owns their health care plan, they have a greater stake in
making sure it works correctly and that they are seeing the doctors and
specialists that fit their needs.
“I’m pleased to see Washington allow for more flexible plans and options
to our state’s public sector employees,” said Condotta.
The benefits of Health Savings Accounts include:
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Many HMO-type plans
force patients to choose from a very limited list of health care
professionals. With HSAs, patients are free to choose the doctors
and specialists they like best.
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HSAs save money by
purchasing a lower-cost, high-deductible insurance plan.
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They offer an
additional 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 system is very broad and
includes chiropractic, contact lenses and glasses, dental,
psychiatric care and surgery.
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For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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