New GAO Report Raises Concerns About President's Health Proposal

Author: Committee on Government Reform Minority Office
Published on Feb 2, 2006, 08:56

Senior House Democrats Pete Stark and Henry A. Waxman today released a report by the Government Accountability Office (GAO) comparing enrollees in Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) with enrollees in the traditional Federal Employees Health Benefits Program (FEHBP).

During his State of the Union Address earlier this week, President Bush signaled that expanding HSAs and HDHPs would be a centerpiece of his domestic agenda. Health policy experts are concerned these will attract only the healthiest participants, raising costs and risking coverage for other individuals and families who remain in traditional plans. The GAO report appears to validate these concerns.

"This report screams 'buyers beware', verifying what we have suspected all along: HSAs and high-deductible health plans proposed by President Bush and the Republicans are designed for healthy, wealthy people," said Rep. Stark. "Despite this reality, President Bush is pushing them on low-income workers -- not to provide them with better health insurance, but to meet his long-term goal of dismantling employer-provided health care. HSAs are another way for the GOP to benefit their special interest friends -- in this case, the insurance industry, corporations, and wealthy taxpayers -- at the expense of America's workers."