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December 01, 2010
Health Savings Account Bill Killed By California Unions
SB 1262, by Senator Sam Aanestad (R-Grass Valley), could have cut California's spending for health care retirement with tax-free Health Savings Accounts (HSA). It would have required the California Public Employees' Retirement System to offer lower cost HSA Plans to state employees.
SB 1262 died as state labor unions opposed the bill in committee hearings, including the Service Employees International Union, California Labor Federation and the California School Employees Association.
Senator Aanestad cannot understand opposition to this HSA plan that is already offered in 46 other states. He says that his plan is based upon the HSA policy that is offered in Indiana, which added an HSA Plan option for state employees in 2005.
By 2010, more than 70 percent of Indiana's 30,000 state workers had selected the HSA option. A study by Mercer Consulting (an independent health care consulting firm) indicated that Indiana's total state employee health care costs have been cut by 11 percent.
Aanestad maintains that, "This Legislature must start making tough decisions when it comes to controlling unfunded state retirement costs, which are approaching $500 billion."
See what options are available to set up your own HSA Plans in California on our website.
Posted by Wiley Long at December 1, 2010 11:05 AM