June 24, 2002

WASHINGTON, D.C.---Last week Senator Ted Kennedy (D.-Mass.) announced his plan for health care reform. He has proposed a sweeping government health care program that is a prelude to full-scale socialized medicine and will cost tax-payers $500 billion over seven years. Archer Medical Savings Accounts (MSAs), which started as a trial program in 1996 and have bi-partisan support in Congress, and have already accomplished two of the major goals that Kennedy outlines as integral to his health care program.  

1.) Insuring the Uninsured

2001 Internal Revenue Service figures shows that 42% of MSA policy holders were previously uninsured.  

"'Roughly two in five people with medical savings accounts had no insurance before they signed up,' said Victoria Bruce, researcher for the Council for Affordable Health Insurance, a trade group of insurers and small businesses"                                       - Anjetta McQueen, Associated Press, 8/25/01.

2.) Control Health Care Costs

Small businesses, who otherwise wouldn't be able to provide health insurance to their employees, can afford Archer MSAs, because of the tax incentives they provide.  Even large insurance companies like Aetna, Blue Cross/Blue Shield and Cigna Healthcare are offering MSAs without a tax benefit because they are still more affordable than HMO care and cost taxpayers nothing.

"After getting a 40% premium increase two years ago, the owners of Camp Shamineau, a year around Bible camp in Motley, Minn., tried something new. They switched their nearly two dozen workers to a medical savings account plan. The savings? About $ 30,000 a year. ...

"'It's working well for us,' [camp's financial administrator Jessie] Raustadt says. 'The premiums are lower, and the employees are happy.'"                                       - Julie Appleby, USA Today 8/27/01

To schedule an interview Karen Kerrigan or another representative from the Coalition for Patient Choice, please contact Katie Wright at 703.683.5004 ext. 132.