Flake, Brat Reintroduce Bill Increasing Consumer Choice in Health Care

Washington, D.C. - U.S. Sen. Jeff Flake (R-Ariz.) spoke on the Senate floor in support of his Health Savings Account Expansion Act, which was reintroduced today, to streamline and expand health savings accounts (HSAs). Sen. Ron Johnson (R-Wisc.) is a cosponsor. A companion bill was also reintroduced in the House of Representatives by Rep. Dave Brat (R-Va.).

As health care costs continue to rise, HSAs provide consumers with the opportunity to save tax-free for their medical expenses. The Health Savings Account Expansion Act would further strengthen this important tool by nearly tripling the arbitrarily low contribution limits and allowing for more universal participation in HSAs.

In addition to incentivizing individuals to save for health expenses, this legislation would also eliminate restrictions put in place by the Affordable Care Act on over-the-counter medications and reduce the penalty for withdrawing HSA funds for non-qualified purchases. Lastly, the bill would allow individuals to use these expanded HSAs to cover the cost of their monthly insurance premiums. As health insurance premiums continue to soar, this is a critically important feature for those whose health insurance has become unaffordable under Obamacare.

"Insurance exchanges are on the verge of collapsing; premiums, deductibles, and out of pocket costs are skyrocketing; and no state is feeling the pinch more than Arizona," said Flake. "If we want to lower health care costs and improve consumer choice, the key is not more government intervention, but allowing individuals the freedom to take back control of their own health care and incentivizing prudent decision making. This legislation goes a long way towards accomplishing these goals and ought to be in the conversation as Congress considers options for replacing Obamacare."

"American workers and families deserve the best health coverage, care and options tailored for their specific needs," said Brat. "This bill equalizes the tax treatment for health insurance and care between different ways of paying for it. Instead of having to get coverage approved from the government, an employer, or an insurance company, people will be able to use their HSA funds directly for the products and services that they value."

Video of Flake's remarks can be viewed here https://youtu.be/yN1EGCSgC4o.

A transcript of Flake's prepared remarks can be viewed below.

I rise to speak about important legislation I am introducing today, the Health Savings Account Expansion Act.

Earlier this month, individuals across the country were once again faced with fewer choices and increased costs when purchasing health insurance coverage. Unfortunately, this has been a common occurrence since the Affordable Care Act's inception, and no state is feeling the pinch more than Arizona.

Prior to the flawed roll-out of the exchanges in 2013, Arizona had 24 health insurance companies offering plans in the individual market. But just last year, residents in Arizona's most populous county, Maricopa, had only eight private insurers to choose from on the exchange.

As if that wasn't bad enough, a few months ago, individuals all across Arizona received notifications that their insurance plans were no longer being offered, despite the current administration's hollow assurances that they could keep their plans. Newly-stripped of their preferred health insurance, residents in 14 of Arizona's 15 counties logged onto the Obamacare exchanges to shop for new plans, only to discover that instead of a vibrant marketplace of quality policies, they were left with only one insurer to choose from.

In fact, Pinal County in Arizona briefly held the unfortunate distinction as the only county in America without a single insurer willing to offer plans on its exchange. Not a single one.

Of the few plans that were ultimately made available to hardworking Arizonans on the exchange, the average policy came with a premium hike of nearly 50 percent. And with only one game in town, there was no shopping around for a better deal.

To help put this all in perspective, I'd like to compare the average cost of health insurance in Arizona to one of the most important purchases a family will ever make: owning a home. That's right. Throughout most counties in Arizona, it's now cheaper to put a roof over your family's head than it is to pay your monthly health insurance premium under Obamacare.

In Maricopa County, which includes Phoenix, homeowners can expect to pay nearly $500 more per month on their health insurance than on their house.

In Pima County, home to Tucson, health insurance premiums run the average family $100 more a month than their mortgage.

And then there's Pinal County, the third-largest in Arizona. According to the Arizona Department of Insurance, the average premium for a silver plan in Pinal County for a family of four is over $1,700. This is double the median monthly mortgage payment in the very same county.

Sadly, this situation isn't unique to these, the three most populous counties in Arizona. In all fifteen of the state's counties, premiums for a family of four dramatically exceed the median monthly mortgage.

It is unacceptable for the federal government to force families to expend upwards of $1,700 per month of their hard-earned income on a sub-standard product, without options or choice, only to then slap them with a draconian penalty when they can't afford to comply with an untenable law. Arizona is ground zero for the structural failures that are plaguing insurance markets around the country. Insurance exchanges are on the verge of collapsing, premiums, deductibles, and out of pocket costs are skyrocketing, and our health care system is in desperate need of reform.

That is why I stand here today to introduce the Health Savings Account Expansion Act. The Health Savings Account Expansion Act goes a long way toward reforming our health care system by putting consumers back in charge of their own health care.

The bill provides individuals and families with the freedom to choose the health care that best meets their needs, and allows them to use their Health Savings Accounts on the medical products and services they value the most.

HSAs give consumers greater control over their health care dollars by providing them with a tax-advantaged savings option for their medical expenses. This means that the dollars they work so hard to save can grow over time, tax free, and be withdrawn, tax free, for qualified medical expenses.

The HSA Expansion Act strengthens this important tool by nearly tripling the arbitrarily low contribution limits, thus allowing for greater tax equity and more universal participation in HSAs.

The bill would then allow individuals to use these expanded HSAs to help cover the costs of their monthly health insurance premiums. This is a critically important feature, particularly for middle-class families whose income falls slightly above the qualified threshold for subsidies, but whose health insurance has become unaffordable.

In addition to further incentivizing prudent saving for health expenses, this legislation also repeals restrictions put in place by Obamacare on over-the-counter medications, while also reducing the penalty for withdrawing HSA funds for non-qualified purchases. These reforms will help streamline HSAs while also making them more user-friendly for consumers.

Mr. President, Arizonans are struggling. They're struggling under the weight of a bureaucracy that is complicating their health care decisions, which are some of the most personal and important decisions that individuals make for themselves and their families.

If we hope to lift that burden off the backs of our constituents, we must recognize that the key to reforming our health care system is not more government intervention. Rather, it's about allowing individuals the freedom to take back control of their own health care and incentivizing prudent decision making.

As the Senate looks to repeal this disastrous law and replace it with real reforms that will successfully lower health care costs and improve choice, I look forward to working with my colleagues to ensure that this legislation is included in those negotiations.

Read this original document at: http://www.flake.senate.gov/public/index.cfm/press-releases?ID=496C0D27-1BFB-4EDC-8297-A61A168029EB