[Congressional Record Volume 163, Number 2 (Wednesday, January 4, 2017)]
[Senate]
[Pages S60-S61]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FLAKE (for himself and Mr. Johnson):
  S. 28. A bill to amend the Internal Revenue Code of 1986 to expand 
the permissible use of health savings accounts to include health 
insurance payments and to increase the dollar limitation for 
contributions to health savings accounts, and for other purposes; to 
the Committee on Finance.
  Mr. FLAKE. Mr. President, I rise to speak today about legislation I 
am introducing, the Health Savings Account Expansion Act.
  Earlier this month, individuals across this country were once again 
faced with fewer choices and increased costs when purchasing health 
insurance coverage. Unfortunately, this has been a common occurrence 
since the Affordable Care Act's inception, but no State, I can tell 
you, is feeling the pinch more than my State of Arizona. Prior to the 
flawed rollout of the exchanges in 2013, Arizona had 24 health 
insurance companies offering plans in the individual market. Just last 
year, residents in Arizona's most populous county Maricopa, where I 
live, had only 8 private providers to choose from on the exchange--so 
from 24 to 8. Then, if that wasn't bad enough, a few months ago, 
individuals all across Arizona received notification that their 
insurance plans were no longer being offered, despite the current 
administration's hollow promise that they could keep their plans. Now 
nearly stripped of their preferred health insurance, residents in 14 of 
15 Arizona counties--14 out of 15 counties--logged into the ObamaCare 
exchanges to shop for new plans only to discover that instead of the 
vibrant marketplace they used to have, they were left with only one 
insurer to choose from--so from 24 to 8, to 1 for 14 of Arizona's 15 
counties.
  So today, when I hear my friends on the other side of the aisle 
talking about preserving this wonderful program, I am saying ``What 
State of denial do you live in?'' because it is certainly not working 
in Arizona. In fact, Pinal County in Arizona briefly held the 
unfortunate distinction as the only county in America without a single 
insurer willing to offer plans on its exchange, not a single one. 
Fortunately, a few months later, one stepped in--just one. Of the plans 
that were ultimately made available to Arizonans on the exchange, the 
average policy came with a premium hike of nearly 50 percent--an 
average of nearly 50 percent. With only one game in town, there was no 
shopping around for a better deal.
  To help put this in perspective, I would like to compare the average 
cost of health care coverage in Arizona to one of the most important 
purchases a family will ever make, and that is a home. Throughout most 
counties in Arizona, it is now cheaper to put a roof over your family's 
head than it is to pay your monthly health insurance premium under 
ObamaCare.
  Let me say that again. Throughout most counties in Arizona, it is now 
cheaper to put a roof over your family's head than it is to pay your 
monthly health insurance premium under ObamaCare. This is for Maricopa 
County. It is the county in which I live and includes Phoenix. 
Homeowners can expect to pay nearly $500 more per month on their health 
insurance than they do on their house--$500 more on their health 
insurance than they do on their house. This is for the ObamaCare silver 
plan premium. This is a family--age 40 with two children. So that's 
about the median, and this is the median mortgage payment with respect 
to Maricopa County--$500 more.
  Let's see the visual for Pima County. Pima County is home to Tucson. 
Health care premiums ran an average family $100 more per month than 
their mortgage. So in Pima County you are still paying more--$100 more 
for your health insurance premium than you are for your mortgage.
  Then there is Pinal County, the third largest in Arizona. According 
to Arizona's Department of Insurance, the average premium for a silver 
plan in Pinal County for the average family of four is over $1700. That 
is double the median monthly mortgage payment for the same county. If 
you live in Pinal County, AZ, you are paying twice as much for your 
health insurance premium.
  Keep in mind, we are talking about the premium, to say nothing of 
what happens when you go to the hospital or to your doctor and you have 
to pay deductibles that are through the roof or co-pays that people 
have never experienced before. So when they utilize that coverage they 
paid for with their premium, they realize they can't afford that 
either.
  The situation isn't unique to these counties, the three most populous 
counties in Arizona. In all 15 of Arizona's counties, premiums for a 
family of 4 dramatically exceed the median monthly mortgage.
  It is unacceptable for the Federal Government to force families to 
spend upwards of $1,700 per month of their hard-earned income on a 
substandard product without options or choices, only to then slap them 
with a draconian penalty that they simply can't afford to pay for an 
untenable law.
  Arizona is, without a doubt, ground zero for the structural failures 
that are plaguing insurance markets around the country. Insurance 
exchanges are on the verge of collapsing; premiums, deductibles, out-
of-pocket expenses are skyrocketing; and our health care system is in 
desperate need of reform. That is why I stand here today to introduce 
the Health Savings Account Expansion Act.
  The Health Savings Account Expansion Act goes a long way toward 
reforming our health care system by putting consumers back in charge of 
their own health care. The bill provides individuals and families with 
freedom to choose the health care that best meets their needs and 
allows them to use their health savings accounts on medical products 
and services they value most.

[[Page S61]]

  HSAs give consumers greater control over their health care dollars by 
providing them with a tax-advantaged savings option for their medical 
expenses. This means that the dollars they work so hard to save can 
grow over time, tax free, and can be withdrawn tax free for qualified 
medical expenses. The HSA Expansion Act strengthens this important tool 
by nearly tripling the arbitrarily low contribution limits, thus 
allowing for greater tax equity and more universal participation in 
HSAs. The bill would then allow individuals to use these expanded HSAs 
to help cover the costs of their monthly health insurance premiums. 
This is a critically important feature, particularly for middle-class 
families whose incomes fall slightly above the qualified threshold for 
subsidies but whose health insurance has become unaffordable.
  In Arizona, I like to go to the gym in the morning, and I like to get 
on an exercise bike. By that bike is kind of a hallway where people 
will walk by. Inevitably, in the morning, I will have a lineup of 
people who will stand to tell me their ObamaCare horror stories--how 
much their premiums have gone up or that they no longer have any 
options or that they have had to pay the penalty or that when they go 
to utilize their care, they simply can't afford the co-pays and 
deductibles. I can tell you, it is sobering to hear these stories again 
and again and again.
  In addition to further incentivizing prudent savings for health 
expenses, this legislation repeals existing restrictions put in place 
by ObamaCare on over-the-counter medications while also reducing the 
penalty for withdrawing HSA funds for nonqualified purchases. These 
reforms will help streamline HSAs while also making them more user-
friendly for consumers.
  Arizonans are struggling. They are struggling under the weight of 
bureaucracy that is complicating their health care decisions that are 
some of the most personal and important decisions individuals make for 
themselves and their families. If we hope to lift that burden off the 
backs of our constituents, we have to recognize that the key to 
reforming our health care system is not more government intervention; 
rather, it is allowing individuals the freedom to take back control of 
their health care and incentivizing prudent decisionmaking.
  As the Senate looks to repeal this disastrous law and replace it with 
real reforms that would successfully lower health care costs and 
improve choice, I look forward to working with my colleagues to ensure 
that this legislation is included in those negotiations.
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