Great News for PSPs Offering HSAs
President Bush's agenda for his second term includes good news for those Plan Service Providers (PSPs) offering Health Savings Accounts (HSAs). President Bush introduced HSAs in his first term, and plans to further promote HSAs by:
- Promoting a HSA Tax Credit to aid small business employers and employees. The President is proposing a tax credit for small businesses who establish HSAs for their employees and a tax credit for employees who contribute to an HSA. Under this proposal, a worker with family coverage will get a tax rebate for contributions up to $500, and a worker with single coverage will get a rebate up to $200.
- Providing above-the-line deductions for health insurance premiums. The President has proposed to allow individuals who purchase low-premium, high-deductible insurance to deduct above-the-line the premiums to pay for these policies, thus reducing the net costs of their insurance.
- Providing tax credits for low-income families and individuals. With this tax credit (to be proposed), low-income families and individuals can receive a tax credit either (1) to purchase health insurance or (2) to purchase a low-premium, high-deductible health plan and an HSA.
President Bush has other healthcare proposals to:
- Allow small business to establish Association Health Plans (AHPs). As you know, large businesses can use their purchasing power to get better deals from the insurance companies while small businesses find the available coverage is priced over their reach. To level the playing field, the President has proposed to allow small businesses to band together and negotiate lower-priced coverage for their employees and their families.
- Expand Association Health Plans (AHPs). The President is supporting AHP expansion to enable people who purchase coverage on their own to buy health insurance from a group other than an employer. This expansion will allow civic and charitable groups, churches, and other types of organizations to offer their members health insurance.
- Allow shopping for health coverage across state lines. Consumers now do not have the option of shopping for health coverage across state lines; they are limited to purchasing health insurance in the states where they reside. The President is proposing to remove this limitation, allowing people to find the best rates for their coverage across state lines.
- Fight for Medical Liability. Everyone has heard about the skyrocketing medical liability premiums doctors face today. These increasingly expensive premiums have forced some doctors to give up the practice of medicine, threatened patients' access to needed care, and driven up healthcare costs for everyone. The President is proposing to institute medical liability reforms to solve this healthcare problem while, at the same time, ensuring speedy recovery of damages to patients and fairly compensating those who have been injured.