House Bill Seeks To Expand Use of Health Savings Accounts Through Tax Credits

Reps. Sam Johnson (R-Texas) and Eric Cantor (R-Va.) are cosponsoring legislation (HR 1872) designed to position health savings accounts as "an even more attractive health care option" by making premium payments tax deductible, providing tax credits to small businesses that offer HSAs and giving low-income U.S. residents tax credits for purchasing health care, CQ HealthBeat reports. The bill, announced Thursday at a press briefing sponsored by the Republican House members' "Healthcare Public Affairs Team," is intended to expand the HSAs that were created in the new Medicare law.

According to CQ HealthBeat, the announcement "comes on the heels" of a report released Wednesday by America's Health Insurance Plans finding that more than one million HSAs have been sold in just over one year.

Also at the briefing on Thursday, Rep. John Shadegg (R-Ariz.) announced that he will recognize "Cover the Uninsured Week" by introducing a bill to provide all uninsured U.S. residents with a refundable tax credit to purchase individual or family health coverage. He said individuals could use the credit to purchase coverage other than that provided by their employer but with the same tax benefits that employers receive.

The credit would be like "cash in your pocket" to purchase health insurance, Shadegg said. He added that the tax credit would be "expensive" but that the cost would be largely offset by reductions in the use of emergency departments by the uninsured.

CQ HealthBeat reports that the Republican Healthcare Public Affairs Team, which has 16 members, soon will hold other events to "publicize GOP messages" on the uninsured, medical malpractice and the Medicare prescription drug benefit (CQ HealthBeat, 5/5).