HSAs Could Reduce the Number of Uninsured, Says NCPA; Consumer-Driven Accounts Offer Best Option to Cover the Uninsured 5/10/2004
From: Richard Walker or Sean Tuffnell, 800-859-1154 or rwalker@ncpa.org, both of the National Center for Policy Analysis DALLAS, May 10 -- Increasingly popular health insurance options like Health Savings Accounts (HSAs) create an opportunity to reduce the number of uninsured, according to NCPA President John C. Goodman, who has been dubbed the "Father of HSAs" by National Journal and The Wall Street Journal. "Many of the uninsured are uninsured by choice," Goodman said. "HSAs make health insurance more attractive for healthy people who are deterred by the high cost of conventional insurance." For example, 73 percent of those consumers who bought Medical Savings Accounts (MSAs) were previously uninsured. Preliminary returns also suggest a high rate for HSAs. In addition, NCPA analysis found that many of the uninsured live in middle- and upper-income households. About one-third of the uninsured now live in households that earn more than $75,000 per year. (Please see http://www.ncpa.org/pub/ba/ba460/ ) -- Households earning $50,000 per year or more account for about three-fourths of the increase in the number of uninsured over the past 4 years. And about half of them earn more than $75,000 per year. -- Since 1993, the number of uninsured in households with incomes greater than $75,000 increased 114 percent. By contrast, the number of uninsured with annual incomes less than $25,000 fell by 17 percent. "The common assumption is that uninsured Americans cannot afford coverage and have unmet health needs," Goodman added. "A closer examination of the data, however, shows both assumptions are false." If you would like to discuss how HSAs can reduce the number of uninsured with Dr. Goodman or need more information, please contact the NCPA Office of Communications and Public Affairs at 800.859.1154. You also can find more information about HSAs at http://cdhc.ncpa.org. ------ The NCPA is an internationally known nonprofit, nonpartisan research institute with offices in Dallas and Washington, D. C. that advocates private solutions to public policy problems. We depend on the contributions of individuals, corporations and foundations that share our mission. The NCPA accepts no government grants. |