[Congressional Record Volume 144, Number 7 (Thursday, February 5, 1998)]
[Extensions of Remarks]
[Pages E117-E118]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        THE FEDERAL EMPLOYEES HEALTH CARE FREEDOM OF CHOICE ACT

                                 ______
                                 

                            HON. DAN BURTON

                               of Indiana

                    in the house of representatives

                       Thursday, February 5, 1998

  Mr. BURTON of Indiana, Mr. Speaker, I am please to join my collegue 
Congressman Archer in introducing today the Federal Employees Health 
Care Freedom of Choice Act. This is significant legislation because it 
will allow Federal employees the option to choose a medicare savings 
account combined with a high deducatible catastrophic policy under the 
Federal Employee Health Benefit [FEHB] Program. We believe that it is 
important that Federal employees have the same option that is

[[Page E118]]

now, or will be, available to almost every other American. By offering 
an MSA, Federal employees and their families will have the opportunity 
to take control over their health care dollars by choosing their own 
doctors.
  The FEHB Program is the largest employer-sponsored health insurance 
system in the country. The program is often cited by both the private 
and public sector as a model of efficiency and effectiveness, 
controlling costs through private sector competition with limited 
governmental intervention. Participants choose from roughly 400 
competing health plans nationwide, with anywhere from 10 to 30 health 
plan options available in any particular area. With a fixed dollar 
amount contributed by the Government, Federal employees can decide 
which health plan best meets their specific health needs. We strongly 
believe that the FEHB Program can be further enhanced by allowing 
enrollees the opportunity to choose an MSA option.
  Under our legislation, MSA's combined with a high deductible plan 
will be available to all FEHP Program enrollees, including active 
workers, dependents, and annuitants, at the beginning of 1999. The 
annual deductible limits are identical to those currently in law for 
private market MSA's: $1,500-$2,250 for individual coverage with an 
annual out-of-pocket cap on expenses of no more than $3,000, and 
$3,000-$4,000 for family coverage with an annual out-of-pocket cap on 
expenses of no more than $5,500. Contributions made to the MSA and any 
interest on the account will build up tax free. Distributions from 
MSA's are exempt from Federal income tax to the extent that the 
distributions are used to pay for qualified health expenses. Should the 
worker retire prior to age 65, he or she can continue coverage through 
the high deductible health insurance plan and will continue to have 
contributions made to his or her MSA.
  I believe that there are many advantages to using MSA's. One of the 
most important advantages of MSA's is that it provides individuals 
maximum freedom of choice regarding their health care. Rather than 
putting the power to choose in the hands of the Government, employer, 
insurance company, or provider, MSA's keep the power to choose in the 
hands of the patient. In addition, MSA's have been shown to be cost 
effective. Under the current third party system consumer have little 
incentive to limit spending or weigh the cost-benefits of services. 
However, when individuals realize that the money in the MSA's belong to 
them, they are much more cost-conscious purchasers of health care and 
make much more informed judgments about their own health care needs. 
And, as a result of more cost-effective use of health care resources, 
health care costs are reduced not only for the individual, but 
ultimately for the Government and the taxpayers.
  Over the past few years, many of us in Congress have fought hard to 
provide MSA's to Americans. We have succeeded in providing MSA's to 
both individuals in the private sector and Medicare beneficiaries. It 
is now time for us to turn to our Federal employees and empower them to 
control their own health care decisions.
  Adding MSA's to the FEHB Program will expand choice to Federal 
workers, improve their health coverage, and reduce heatlh care costs 
for Federal employees, the Government, and taxpayers. Furthermore, they 
will further strengthen and improve the FEHB Program by expanding the 
array of choices in the program. I urge my colleagues to join us in 
supporting this essential legislation.

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