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February 01, 2008
Georgia to Make Health Savings Accounts More Attractive
Georgia lawmakers have unveiled proposed legislation that would make health insurance more affordable in the state of Georgia
The legislation would encourage small businesses to provide their employees with high-deductible health plans, coupled with Health Savings Accounts. It will also allow Georgians to deduct health insurance premiums from their state taxes if they have a high-deductible health insurance plans, said State Sen. Judson Hill (R-Marietta).
If you are a reader of this blog, you know a high-deductible health plan is an insurance plan that offers consumers lower premiums and higher deductibles. Health Savings Accounts allow people to pay for health care with tax-free dollars.
Estimates indicate about 500,000 Georgians could become insured if the reform legislation is passed by the 2008 Georgia General Assembly.
"This is a market based solution focused on empowering individuals and rewarding them for making healthy choices," said Hill, who authored the legislation. "This plan will make affordable health insurance more accessible for the uninsured and working families."
The legislation would include rebates for consumers who have high deductible plans with health savings accounts, when they engage in healthy behavior such as smoking cessation, weight loss or controlling diabetes.
The legislation would also incentivize companies to offer their employees HSAs. Employers with up to 50 employees could take a tax credit of $250 per employee that enrolls in a HSA eligible high-deductible plan. This legislation would also allow consumers to deduct premiums from state income taxes, if they are not already deducting premiums from federal income taxes. This would apply to consumers who purchase a high-deductible health insurance plan as an individual, or through an employer.
This legislation will be a great benefit for all Georgians. Hopefully more states and the federal government will follow Georgia's lead in making HSA insurance plan premiums tax deductible.
Posted by Wiley Long at February 1, 2008 01:39 PM