The original claim was that all uninsured Americans would have free or inexpensive healthcare by way of HSA.
Correct from the date we are discussing, which was 1993. Health care expenses were substantially lower 25 years ago.
For your information, the HSA idea started well before the 21 century, which you mistakenly date it from. I apologize for using the term “HSA” as a synonym of for “MSA”, which is what we were calling them during that decade.
History of Health Savings Accounts - MSAs to HSAs
In the 1980s and 1990s, Congress began discussing Medical Savings Accounts (MSAs) where any consumer could (1) pay for…
The key point here is that it is the subsidy that is making healthcare affordable for the uninsured and not the HSA.
Obviously. However, the HSA has cost control features, which we desperately need. If cost control isn’t implemented somehow and soon in the health services marketplace, it doesn’t matter what scheme we come up with; all will fail. Without cost control, all this debate on ACA, AHCA, whatever…..is just moving the deck chairs around on the Titanic.
Re-read the original post. The aforementioned comment was that a $2,000 savings account would do nothing to prevent an individual from going into bankruptcy when they incur $100k in hospital bills. There was no mention of HSA account costs, expense ratios, etc.
You’re making a distinction without a difference. The point is that a person insured by an HSA would not have 100k of hospital bills.
This exemplifies some troubles with HSAs. Most people don’t realize that their HSA can be used as investment accounts where the growth is also tax-free.
That’s not a problem with an HSA; that’s a problem with consumer education.
People shouldn’t be balancing their healthcare costs from an annual perspective — they ought to budgeting them for a lifetime perspective.
I quite agree. I’ve written another article on this site pointing out that the “health care debate” should migrate from the idea of “insurance” to the idea of “prepaid medical”. After all, insurance is about pricing risk, which the government seems to want to prohibit, regardless of what plan you prefer.