Accounts would put burden on workers

Published 9:00 pm Saturday, February 11, 2006

President Bush and business interests are pushing health savings accounts (HSAs), which are teamed up with high-deductible insurance. The idea is to force more judicious healthcare purchases by people who have to spend more of their own money on health care.

I say be very skeptical. This sounds a lot like the 401(k) plan, which has proven to be a dangerous Trojan horse.

The 401(k) was introduced to supplement classic defined-benefit pension plans. Companies have now realized they can dump pensions for 401(k)s, which leave most of the financial liability to employees. Today the defined-benefit pension has all but vanished.

HSAs threaten to do the same for health care – leaving employees in the “ownership society” holding an empty bag.

HSAs may work for the young and healthy, but pose a real danger for everyone who can’t afford the financial contributions, or who has extensive health care needs.

Another problem: HSAs are supposed to turn us all into smart healthcare consumers. That’s fine, but doctors, hospitals and insurers are years away from providing the kinds of cost and quality information consumers can act on, or even understand.

We’ll be hearing much touting of HSAs from the administration and its industry backers. As you listen, remember that you, the consumer, will be responsible to administer what this discussion needs most of all: truth serum.

Walt Greenwood

Everett