NCPA - National Center for Policy Analysis


December 17, 2007

The popularity of health savings accounts for the poor will be put to the test in Indiana under a recently approved program by the Bush administration, says the Associated Press.

Under the plan:

  • Eligible residents can pay up to 5 percent of their incomes into state-subsidized "Personal Wellness and Responsibility Accounts" that cover their initial medical expenses up to $1,100.
  • Once that deductible is reached, private insurance purchased by the state kicks in.
  • Eligibility is limited to adults with incomes below twice the federal poverty level; the poverty level is now $10,210 for an individual and $20,650 for a family of four.

Indiana officials said they've already received inquiries from more than 1,000 people interested in applying.

"This is a big step forward that will lead to approximately 120,000 uninsured Hoosiers having the peace of mind of health insurance," said Indiana Gov. Mitch Daniels.

Source: Kevin Freking, "Health Savings Accounts for Poor Tested," Associated Press, December 15, 2007.


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