Entries for December 09, 2005

Here's an interesting article on health savings accounts from the Wall Street Journal.

The Bush administration and the congressional Republican leadership argued that one of the main achievements of the 2003 Medicare prescription drug bill was that it authorized and encouraged health savings accounts—health insurance with high deductibles that allow policyholders to retain sums not spent. The argument is that HSAs encourage policyholders to weight the cost of routine healthcare and at the same time protect them from catastrophic expenses. After all, your auto insurance doesn't pay you for oil changes but does pay if your car is totaled. Why should a health insurance policy pay for routine, predictable medical expenses but not cover the full cost of catastrophic care?