NCPA - National Center for Policy Analysis

HEALTH SAVINGS ACCOUNTS FOR POOR TESTED

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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