April 20, 2001

Washington, D.C.-In a new study released today, "Medical Savings Accounts: The Necessary Centerpiece of Health Care Reform," the Small Business Survival Committee (SBSC) declared that expanding access to tax-free medical savings accounts (MSAs) is front and center in the debate over health care reform due to their proven value, and a growing need for competitive alternatives in the marketplace.

"The power and effectiveness of MSAs are being noticed by members of Congress and the Bush Administration. Patient-run health care will only get better when Congress institutes some key MSA reforms, which include allowing all individuals and businesses the option of purchasing MSAs," observed SBSC chairman Karen Kerrigan.

A bipartisan bill was recently introduced by Reps. Bill Thomas (R-Calif.), House Ways and Means Chairman, and William Lipinski (D-IL) that would allow for universal MSAs, while lifting government-imposed barriers that have limited their viability in the marketplace.  President George W. Bush included MSA expansion in his budget blueprint.

SBSC chief economist Raymond J. Keating, author of the study, commented: "Increased government involvement in health care is ultimately a bitter pill for consumers.  Contrary to what the advocates say, increased regulation and mandates drive up costs, and reduce access to affordable, high quality health care.  Likewise, more government funding and programs result in higher taxpayer costs, rationed care, and price controls."

The report explains how MSAs work; highlights the benefits for consumers and the health care marketplace; and lays out the necessary policy steps to make MSAs a viable choice for all health care consumers.

Keating concludes: "In the end, expanded use of MSAs would reduce overall health care inflation, and restrain the costs of government health care subsidies.  Businesses would experience lower health care costs for their employees.  And health care consumers would have greater access to affordable health care, and would be empowered to make their own health care decisions."

For a copy of "Medical Savings Accounts: The Necessary Centerpiece of Health Care Reform," please visit SBSC's website at www.sbsc.org or call 202-785-0238.  SBSC is a nonpartisan, nonprofit small business advocacy group with more than 70,000 members across the nation.