Senate Passed Bill
Would (Finally) Make
Medical Savings Accounts Available in Connecticut
(April 22, 2003,
Arlington, VA) -- The National Association of Health Underwriters (NAHU)
applauds the Connecticut Senate for passing legislation to make the federally
regulated Archer Medical Savings Accounts (MSAs) available to Connecticut
residents. Proponents of MSAs have been trying to get this important
legislation passed in Connecticut since 1997.
MSAs allow eligible individuals the opportunity to create a tax free savings
account from which they can pay their routine medical expenses. MSA users
also must purchase a high deductible health insurance policy to protect them
against major illnesses or injuries. The minimum deductible in 2003 is $1,700
for individuals and $3,400 for a family. The combination of a funded
account and a lower cost, high deductible policy make health coverage far more
affordable for eligible small employers and sole proprietors.
The bill moving through the legislature now would fix a quirk in Connecticut
law that requires a maximum deductible of $50 for home health care in group and
individual health insurance policies. This mandate excludes Connecticut
residents from participation in the federal Archer MSA program, which requires
higher deductibles.
"The crisis of the uninsured is growing," explained Janice Kupiec,
NAHU's manager of state government affairs. "However, according to
the most recent IRS accounting of MSAs, nearly 75% of the individuals who
purchased an MSA in 2001 were previously uninsured. MSAs have allowed
them to purchase affordable, high quality and comprehensive health care.
One of the best counter measures to the rising number of uninsured Americans is
the enactment of MSAs for all Americans."
Connecticut insurance agent John Parker agreed that MSAs would be welcome in
his state. "Federal MSAs would benefit a lot of people in
Connecticut because so many state residents are sole proprietors. Connecticut
regulations allow a group with one or two employees to be charged 20% more
causing most sole proprietors to be priced out of the health insurance
market. The Archer MSA would be an affordable option for them. By
increasing choice in the health care market, MSAs provide a double benefit
Connecticut citizens have been long denied."
The National Association of Health Underwriters represents 18,000 professional
health insurance agents and brokers across the country who provide insurance
for millions of Americans. NAHU is headquartered in Arlington, VA.
For more information, please call Kelly Loussedes at 703-276-3835 or email
kloussedes@nahu.org.
###