NEWS RELEASE

June 28, 2006
PR-06/17
For additional information:
Jason Hammersla; (202) 289-6700

Council supports legislative efforts to improve HSAs

WASHINGTON, D.C. — “All Americans need more affordable health plan choices, and Health Savings Accounts (HSAs) help answer this call by making our health care system more directly responsive to consumers’ decisions about their needs,” said Paul Dennett, American Benefits Council vice president, health policy. The House of Representatives Ways and Means Committee is holding a hearing today at which several witnesses representing employers and health plans are expected to discuss their experiences with HSAs.

“HSAs encourage more prudent use of health services and allow tax-free spending on a wide range of medical expenses,” Dennett said. “Employer sponsorship and participation in this new health plan design are increasing annually, but some changes to the current rules are still necessary to improve the system for everyone.”

The Council supports several reform initiatives that would further encourage employers to sponsor HSAs and HSA-compatible health insurance for their employees. “We support legislative efforts such as the Tax-Free Health Savings Act (H.R. 5262), sponsored by Representative Eric Cantor, which would allow workers who participate in other types of health plans — such as flexible spending arrangements and health reimbursement arrangements — to participate in these programs. Representative Cantor’s legislation also helps retirees pay health insurance premiums using funds from their HSAs and increases contribution limits for these plans so individuals can better meet their future health care needs,” Dennett said.

“The Council shares the Ways and Means Committee’s goal of a more affordable and efficient health care system and we believe that HSAs are an important part of the solution,” Dennett said.

To arrange an interview with Dennett or James Klein, Council president, please contact Jason Hammersla, Council manager, communications & publications, at jhammersla@abcstaff.org or by phone at (202) 289-6700.

The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council’s members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.