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July 11, 2005
Health Savings Accounts for Everyone in Wisconsin
A bi-partisan bill proposed in the state of Wisconsin will set up a Health Savings Account (HSA) for every adult in the state. This is actually part of a government sponsored health plan, in which all Wisconsin residents will receive a “Premium Credit” which they can use to purchase health insurance from competing, qualifying health insurance policies.
All Wisconsin residents (under age 65) will own a Health Insurance Purchasing Account; and a Health Savings Account funded at $600 per year. There is an annual deductible of $1,200 and co-insurance or co-pays for medical and hospital care, for prescription drugs, and for non-emergency use of hospital emergency rooms. There is an annual out-of-pocket maximum of $2,000.
The funds to cover this would allegedly come from an employer paid assessment. The interesting thing is that even though this is a quasi-governmental medical insurance program, it is much different from a typical system of socialized medicine. Competition is build into the system by allowing competing insurance plans, and consumerism is introduced by allowing Health Savings Accounts. These two features motivate people to find the best way to spend their healthcare dollar, and reward those who stay healthy by enabling them to build a nest egg in their HSA.
Posted by Wiley Long at July 11, 2005 09:58 AM