health
A better alternative to high-deductible health insurance
Nearly 60% of voters say out-of-pocket medical costs are among their most pressing financial worries. Yet Congress seems unwilling to heed that concern.
TL;DR
- Nearly 60% of voters are concerned about out-of-pocket medical costs.
- Out-of-pocket costs under the Affordable Care Act have increased significantly, with average deductibles in Silver plans doubling employer plans.
- The article proposes an improved Health Savings Account (HSA) system to address high medical costs.
- This enhanced HSA model would allow insurers to deposit funds into HSAs, with individuals taking full financial responsibility for agreed-upon areas of care.
- This approach is modeled after the successful Medicaid Cash and Counseling program.
- Individuals would voluntarily assume responsibility for certain benefits in return for a cash deposit, allowing a free market to determine the cost of self-insurance for various medical services.
- Unlike current laws, these HSAs would not require a high, across-the-board deductible.
- HSAs should be Roth-type accounts, allowing tax- and penalty-free withdrawals for non-healthcare purposes at the end of the insurance period.