Is the future of healthcare a stronger safety net or HSAs? The answer is yes.

By Jon Kessler, HealthEquity President and CEO

Across the political spectrum, there is actually agreement that every American family should have access to an affordable safety net of comprehensive health insurance coverage.  91% of Americans have comprehensive coverage today, up from 84% prior to the ACA.   For some, further Medicaid and Medicare expansion is the way to 100%.  For others, it’s letting the marketplace tailor coverage to better meet individual needs.  In any case, universal access to coverage is a near universal goal.

But, Social Security did not solve retirement. Neither will a safety net of coverage solve healthcare. The 91% of Americans with coverage still need to manage their present and lifetime health expenses. For 22 million families and growing, HSAs do just that, by creating an effective tax deduction for current healthcare costs and an incredibly tax-efficient way to save for future ones. Some of the people that benefit the most from HSAs come from middle income households. These families are exposed to high marginal tax rates and oftentimes don’t even realize the cumulative impact of federal, state, Social Security, and Medicare taxes that can all be avoided on the portion of their income that is protected by HSAs.

So, let’s complete the healthcare safety, AND, give Americans the tools, like HSAs, to live above it.

Bryan CaplanComment