Sam Johnson introduces common-sense health savings accounts bill

Sam Johnson introduces common-sense health savings accounts bill

Today U.S. Congressman Sam Johnson (3rd Dist.-Texas) announced the introduction of a new common-sense health savings accounts bill.

The Health Savings Accounts Premium Affordability Act of 2006 builds on the successes of the popular health savings accounts (HSAs) that became law under the Medicare bill. Used in conjunction with a high-deductible health plan, HSAs help people save for future qualified medical and retiree health expenses tax-free.

H.R. 5586, Johnson's new bill, would help those who buy health insurance on their own and use health savings accounts. Under Johnson's measure, families who buy health insurance on the individual market would be able to use the money saved tax-free in a health savings account to pay for their health insurance premiums. People who buy or receive health insurance through an employer already enjoy this benefit.

"Why should those who buy their own health insurance continue to be penalized? It's time to level the playing field and allow people who buy their own health insurance to have the same tax benefit as those who receive their health insurance through an employer. It's just common sense," said Johnson.

Another feature of Johnson's measure is that once a person with an individual policy lands a job that offers to pay for health insurance, the employer may deposit money tax-free into the new employee's existing health savings account, rather than craft a new plan for the employee.

Since the creation of HSAs, more than three million Americans have selected HSAs as their choice for health insurance coverage. According to the Administration, 40 percent of those who own HSAs have family incomes below $50,000. More than one-third of those who bought HSAs on their own had previously been uninsured.

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http://www.samjohnson.house.gov/News/DocumentSingle.aspx?DocumentID=45309