[Congressional Record Volume 143, Number 32 (Thursday, March 13, 1997)]
[Extensions of Remarks]
[Page E471]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




[[Page E471]]



              STATEMENT TO INTRODUCE THE MSA EXPANSION ACT

                                 ______
                                 

                        HON. WILLIAM O. LIPINSKI

                              of illinois

                    in the house of representatives

                        Thursday, March 13, 1997

  Mr. LIPINSKI. Mr. Speaker, I rise today to introduce a bill that will 
extend medical savings accounts to millions of Americans. Commonly 
known as MSA's, these tax free accounts are combined with a high 
deductible health insurance plan to help lower health care costs and 
increase consumer choices.
  The much needed Health Insurance Portability and Accountability Act 
that was signed into law by President Clinton last summer included a 
pilot program for MSA's, but with restrictions. The law limits the 
number of MSA policyholders to 750,000 by 1999, and the pilot program 
is expected to end in the year 2000. The MSA Expansion Act will allow 
all small businesses with 50 or fewer employees, and the self-employed, 
to choose an MSA, and it will repeal the sunset of the pilot program so 
future generations will be able to benefit from MSA's too.
  This legislation is needed because some experts predict that the 
750,000 cap will be reached as early as this spring, since demand for 
MSA's has far exceeded expectations. To meet the demand from small 
businesses, the self-employed, and a surprisingly high number of 
uninsured, an average of four new health insurance carriers a week are 
entering the MSA market.
  Clearly, the high number of uninsured who have purchased MSA's signal 
that MSA's are not solely attracting the healthy and the wealthy, as 
some people predicted. No one has found a single example of such 
adverse selection resulting from the institution of MSA's, and it will 
not happen because for adverse selection to occur, the very sick must 
shun MSA's. This does not and will not happen, as the very sick will 
save money in many cases since their out-of-pocket costs will be less. 
Moreover, they will choose MSA's because they will have their choice of 
physician or specialist.
  The MSA Expansion Act is what the American people want and deserve. 
It will lower health care costs for everyone, provide more choices, and 
extend the accessibility and affordability of health care to the 
unemployed and the uninsured. I urge all of my colleagues on both sides 
of the aisle to join me as cosponsors of this important legislation.

                          ____________________