On behalf of Americans for Tax Reform, I am writing in support of S. 1098, the Family and Retirement Health Investment Act of 2011. This important legislation strengthens health savings accounts (HSAs) and flexible spending accounts (FSAs) for workers and retirees. Your bill puts hard working Americans in charge of their own healthcare choices, allowing for both informed decision-making and restrained costs.
An HSA is a unique savings account available to any taxpayer with a low premium, high deductable health plan. These accounts provide tax exempt savings as well as tax deferred growth. Perhaps best of all, withdrawals from HSAs are tax free when used to pay for qualifying medical expenses.
S. 1098 features commonsense HSA reforms in the areas of prescription drugs and insurance premiums. The bill will effectively coordinate HSAs with other important health accounts, such as FSAs. Furthermore, HSAs will now be properly integrated with Medicaid and Medicare.
Americans for Tax Reform has long been a proponent of HSAs. I am pleased that your bill will expand the availability of these accounts. In general, families deserve to have greater control over their own finances. Neither an insurance company nor any other third party should be able to deprive families of control over their healthcare choices.
HSAs are the key to preserving these choices, and it is with great pleasure that I endorse this legislation.
Here is the entire letter sent to Sen. Orrin Hatch (R-Utah).