[Congressional Record Volume 142, Number 67 (Tuesday, May 14, 1996)]
[Extensions of Remarks]
[Pages E793-E794]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        MEDICAL SAVINGS ACCOUNTS

                                 ______


                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                         Tuesday, May 14, 1996

  Mr. COLLINS of Georgia. Mr. Speaker, the Georgia State Senate 
recently adopted a resolution that encourages the Congress of the 
United States to enact health care reform measures that include Medical 
Savings Accounts [MSA's]. State legislators realize that MSA's will 
eliminate barriers to health insurance and increase access for millions 
of Americans. For the record I submit a copy of the resolution adopted 
by the Georgia State Senate on March 5, 1996.

                              A Resolution

       Encouraging the Congress of the United States to enact 
     legislation to provide for medical savings accounts; and for 
     other purposes.
       Whereas, it is estimated 37 million Americans are without 
     health insurance, many while between jobs, and more are 
     underinsured because of the effects of rising health

[[Page E794]]

     care costs and spending. The costs of health care are 
     escalating, forcing employers to trim the level and 
     availability of health care benefits to their employees; and
       Whereas, overutilization of health care services for 
     relatively small claims is one of the most significant causes 
     of health care cost and spending increases. Currently, more 
     than two-thirds of all insurance claims for medical spending 
     are less than $3,000.00 per family per year in this country; 
     and
       Whereas, in response to the runaway cost increases on 
     health care spending in this country, the private sector has 
     developed the concept of medical savings accounts. This 
     initiative is designed to ensure health insurance 
     availability for Americans. It is predicated on providing 
     incentives to eliminate unnecessary medical treatment and 
     encourage competition in seeking health care; and
       Whereas, through employer-funded medical savings account 
     arrangements and reduced cost qualified higher deductible 
     insurance policies, millions of Americans could insure 
     themselves for both routine and major medical services. Under 
     the concept of medical savings accounts, an employer 
     currently providing employee health care benefits would 
     purchase instead a low cost, high deductible major medical 
     policy on each employee. The employer may then set aside the 
     saved premium differential in a medical savings account 
     arrangement. The participating employees would use the money 
     in the account to pay their medical care expenses up to the 
     deductible. However, any account money unspent by the 
     participating employees in a plan year would then belong to 
     the employees to save, spend on medical care, or use 
     otherwise. This would be a strong incentive for people not to 
     abuse health expenditures and to institute ``cost-shopping'' 
     for medical care services; and
       Whereas, by setting aside money for employees to spend on 
     health care, employees could change jobs and use the money 
     they had so far earned to buy interim health insurance or to 
     cover health care expenses, thereby eliminating the problems 
     of uninsureds between jobs and helping to reduce ``job-
     lock''; and
       Whereas, by making medical care decisions the employee's 
     prerogative, individual policyholders have a strong stake in 
     reducing costs. This simple financial mechanism will expand 
     health insurance options to others who presently have no 
     insurance. Most importantly, this move to decrease health 
     care cost burdens in this country would require no new 
     federal bureaucracy and would be revenue neutral to 
     employers.
       Now, Therefore, be it Resolved by the Senate that the 
     members of this body encourage the Congress of the United 
     States to enact legislation swiftly and in good faith to 
     enable Americans to establish medical savings accounts.
       Be it further Resolved that the Secretary of the Senate is 
     authorized and directed to transmit an appropriate copy of 
     this resolution to the President of the United States, the 
     President of the United States Senate, the Speaker of the 
     United States House of Representatives, and all members of 
     the Georgia congressional delegation.

                          ____________________