[Congressional Record Volume 147, Number 42 (Tuesday, March 27, 2001)]
[Extensions of Remarks]
[Page E462]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       IN SUPPORT OF THE MEDICAL SAVINGS ACCOUNT AVAILABILITY ACT

                                 ______
                                 

                        HON. WILLIAM O. LIPINSKI

                              of illinois

                    in the house of representatives

                        Tuesday, March 27, 2001

  Mr. LIPINSKI. Mr. Speaker, I rise today in support of medical savings 
accounts. As we begin the 107th Congress, I am sad to report that over 
43 million Americans are without health insurance. One solution to help 
alleviate this problem is medical savings accounts (MSAs). Figures 
recently released by the Internal Revenue Service confirm that MSAs are 
insuring the uninsured at an astounding rate. According to the IRS, 
since the program began in January of 1997, 32 percent of MSA 
purchasers were previously uninsured.
  This success is in spite of restrictions placed on the pilot program, 
which was part of the bipartisan Kassebaum-Kennedy health care bill 
that President Clinton signed into law in 1996. As of now, you can only 
get an MSA if you work for a company with 50 or fewer employees or if 
you are self-employed. However, many thousands of uninsured people have 
been purchasing MSA policies because MSAs are making health insurance 
affordable for the first time. In addition, MSAs allow for choice of 
doctor and put healthcare decisions in the hands of the individual, not 
a managed care administrator.
  Today, following in the bipartisan spirit under which MSAs were 
originally created, Chairman Thomas and I have introduced the Medical 
Savings Account Availability Act, with strong bipartisan support. This 
bill would repeal the 750,000 cap on taxpayer participation and make 
MSAs permanent. The legislation also expands the eligibility of MSAs to 
all individuals with a qualified high deductible plan.
  Repealing the 750,000 cap and making MSAs permanent are key to 
continuing the success of MSAs. Last year, Congress extended MSAs for 2 
years. Nevertheless, many insurers are reluctant to invest the capital 
to market MSAs if they will expire soon. The Medical Savings Account 
Availability Act would make MSAs permanent. Insurers have also been 
hesitant to offer MSAs because the cap restrictions limit the size of 
the market in which MSAs could be offered. Therefore, repealing the cap 
would encourage the mass marketing of MSAs and increase Americans' 
awareness of the benefits of MSAs.
  It has been 8 years since the first Medical Savings Account bill was 
introduced with bipartisan support. MSAs have a proven track record of 
insuring the uninsured, giving individuals choice and control over 
their health care, making health care affordable by reducing the cost 
of premiums, and encouraging Americans to save for long-term health 
care expenses. With 43 million Americans vulnerable and uninsured, it's 
time to make MSAs available to everyone. I look forward to working with 
Chairman Thomas, members of both parties, and others who want all 
consumers to be able to reap the benefits of MSAs. I urge my colleagues 
to join us and support the Medical Savings Account Availability Act. 
The 43 million uninsured Americans will thank you.

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