[Congressional Record Volume 142, Number 57 (Tuesday, April 30, 1996)]
[House]
[Page H4168]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      MEDICAL SAVINGS ACCOUNTS, THE EPITOME OF HEALTH CARE REFORM

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Illinois [Mr. Lipinski] is recognized for 5 minutes.
  Mr. LIPINSKI. Mr. Speaker, I rise tonight to say a few words about 
our health care system. The current debate over changing our system 
seems to have fallen victim to partisan political posturing. That is 
unfortunate.
  Three years ago, along with a dozen of my Democratic colleagues, I 
cosponsored legislation to create medical savings accounts, most 
commonly known as MSA's. Today, I am still a Democrat, and I am still a 
supporter of MSA's.
  MSA's are an idea whose goal is to re-introduce the consumers' best 
interests into the health care market place. Clearly, consumers' needs 
are not being met. For instance, when was the last time a mammogram 
sale was advertised?
  We see advertisements concerning sales on eye check-ups, eyeglasses, 
and frames--we even receive mailings on teeth cleanings and annual 
dental exams. So what is the difference?
  Typically, an individual's health care expenses are paid for by their 
insurance policy, so there is never a thought about finding premium 
care at low costs. Why? Because people are spending the insurance 
company's money, not their own.
  But when it comes to spending money on eyeglasses or for a dentist--
money that typically comes right out of one's own pocketbook--cost, 
service, and quality suddenly become important. In fact, due to cost 
effective shopping, spending for those industries was relatively flat 
during the years health care costs were soaring.
  MSA's would encourage the same kind of consumer response for health 
care. By forcing doctors and hospitals to compete for patients who are 
concerned about quality and cost, health care spending will slow down. 
Ultimately, this competition will lead to sales on important services, 
such as mammograms.
  Likewise, MSA's will provide a real incentive to shop around for the 
best values and alternatives when nonemergency treatment is needed. The 
incentive? Consumers will keep the money they save.
  Critics of MSA's claim that this incentive will lead healthy people 
to choose MSA's, leaving sick people in a separate, and therefore, more 
expensive health insurance pool. But while many healthy people will 
choose to save money, the sick will also choose MSA's because their 
out-of-pocket costs will be less.
  Moreover, during recent health care debates, a rallying cry on both 
sides of the aisle was choice. MSA's provide that choice for consumers, 
and that is exactly what MSA's are about.
  And what is wrong with giving a break to people who take care of 
themselves, exercise regularly, watch what they eat and drink, and 
don't smoke? Don't they deserve something for their efforts?
  We as a society are already subsidizing those who abuse drugs and 
alcohol and are severely overweight. According to one recent study, one 
out of every four welfare mothers uses illegal drugs or drinks 
excessively. In addition, it is documented that Medicaid recipients use 
prescription drugs 2.2 times as much, see their doctors 3.6 times more, 
and visit the hospital 4.5 times as often as those who have their own 
insurance.
  So I ask again, what is wrong with giving people a break for taking 
care of themselves?
  There are additional reasons that MSA's are good for the consumer. 
MSA's will reduce administrative overhead as small bills will be 
settled and paid directly between provider and consumer. They will also 
increase the record low savings rate of Americans. Lastly, since MSA's 
provide an incentive to stay healthy, preventive medicine will be 
encouraged.
  These are the reasons I support the MSA concept when I first heard 
about it, and these are the reasons I support MSA's today.

                              {time}  2000

  But there is an additional and very powerful reason why I still 
support MSAs. They are clearly successful where they are being offered, 
in spite of Congress' failure to act on the needed changes in the Tax 
Code.
  So I say to my colleagues, as we prepare to reconcile the House and 
Senate health reform bills, include MSAs in any health insurance reform 
measure that will come out of Congress this year, because MSAs will cut 
costs, provide choice, promote healthy lives and save money for the 
consumers. Is that not what the epitome of reform is?

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