Washington, D.C. -- With the cost of health insurance quickly becoming out-of-reach for many small business owners and self-employed entrepreneurs, the Small Business Survival Committee (SBSC) applauded President Bush for outlining an agenda today to help make America's health care system more affordable, flexible and accountable. In particular, SBSC was pleased that the President emphasized the need for greater consumer control and choices in health care through Medical Savings Accounts (MSAs).
"MSAs have allowed many uninsured individuals to buy health coverage while giving them the power to choose their doctors, and shop for the best quality health care services. For many American families, MSAs have also served as a savings vehicle for their retirement future and long-term health care needs. All consumers should have the option of choosing an MSA, and we applaud the President for his pursuit of this goal," stated SBSC Chairman Karen Kerrigan.
In addition to high costs, consumers are increasingly frustrated by a lack of choices and restrictions placed upon them by their insurance plans, according to SBSC. The Medical Savings Account (MSA) is a solution that is working, but federal law restricts their availability and potential in the marketplace.
"It's unfair that the federal government gets to pick and choose who can buy an MSA. The restrictions and barriers placed upon MSAs have also been a deterrent to their potential in the marketplace. But remarkably, consumers are cheerfully embracing MSAs, which only demonstrates the extraordinary demand for consumer-centered health care options," added Kerrigan.
MSAs combine a tax-free savings account feature for medical expenses with a high deductible policy. Consumers utilize the money in the account for out-of-pocket expenses - they choose their doctors, comparison shop for best-value and quality providers in the health care system. According to the IRS, well over 30 percent of those purchasing MSAs are the previously uninsured.
For more background information about MSAs and their potential in the marketplace, check out these SBSC resources:
Putting Consumers in Control of Health Care is the Cure http://www.sbsc.org/LatestNews_Action.asp?FormMode=SmallBusBriefs&ID=107Bush on Target With MSAs http://www.sbsc.org/LatestNews_Action.asp?FormMode=CyberColumn&ID=190SBSC Q&A with Rep. Bill Lipinski (D-IL) on Health Care Reformhttp://www.sbsc.org/QuestionOfWeek.aspSBSC is a national, nonprofit small business advocacy organization with 70,000 members nationwide. For more information, please call (202)-785-0238 or visit their website at www.sbsc.org.
