Medical Savings Accounts are being attacked on the left, on the right and by special interests. The most vocal criticism comes from large insurance companies who fear a huge loss of premium income if MSA deposits are tax free. Most of the criticisms are bogus.
Medical Savings Accounts are being attacked on the left, on the right and by special interests. The most vocal criticism comes from large insurance companies who fear a huge loss of premium income if MSA deposits are tax free. Most of the criticisms are bogus.
The Michel-Lott plan builds on key reform ideas developed by the National Center for Policy Analysis. However, some benefits of the reforms would be diluted by unnecessary insurance regulations that should be dropped from the proposal.
A group of moderate Republicans and Democrats in the Senate has proposed a so-called mainstream health care plan.
The health refonn plan proposed by Senator George Mitchell CD-ME) attempts to increase the number of people with health insurance by offering generous subsidies to induce voluntary compliance. Employer mandates would kick in only if the fraction of people with insurance failed to reach 95 percent in a state by the end of the decade. Reaching that goal is unlikely, however. The reason is that the Mitchell bill would allow people to purchase insurance at community-rated premiums after they get sick – thus encouraging them to go uninsured until an illness occurs.