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New Joint Economic Committee Democrats Report: Health Savings Accounts are Not the Answer

WASHINGTON, D.C. – Ranking Member Martin Heinrich (D-NM) announced today the release of new analysis by the Joint Economic Committee Democrats outlining why the Republican healthcare plan’s emphasis on health savings accounts (HSAs) won’t help the 24 million Americans losing their health coverage if Republicans repeal the Affordable Care Act and replace it with the flawed American Health Care Act.  HSAs principally benefit wealthy Americans who are able to save at much higher rates, while doing little to help most Americans afford the healthcare they need.

Today’s brief, “Why Health Saving Accounts are Not the Answer,” explains that making families rely on HSAs means that families have to save hundreds of dollars a month to cover medical expenses, a proposition that is very difficult for most Americans. Only 53 percent of American families are able to save at all – and those families are the disproportionately wealthier families the GOP health plan already benefits at the expense of others. Less than half of low-and middle-income families are able to save, and in the poorest families, fewer than one in three are able to save for HSA's. 

“Adding this burden to many American families to pay for life-saving care is unrealistic and mean-spirited,” said Senator Heinrich. “In addition to costing 24 million Americans their health coverage, the Republican plan will place unnecessary hardships on low-income and working Americans while giving away millions to the wealthiest among us.  HSAs do not make health coverage more accessible and asking a waitress to save hundreds of dollars more per month to finance another tax break for wealthy corporate executives is as backwards of an idea as you could create.  Having an economy that works for all means making sure Americans get the affordable health care they deserve.”

The report can be found here.

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 For more information, please contact Latoya Veal at Latoya_Veal@jec.senate.gov or 202-224-0379.