Bush pushes health savings accounts despite political hurdles
Uphill fight to pass bill during an election year
Associated Press, April 5, 2006
BRIDGEPORT, Connecticut (AP) -- President Bush, mixing politics with his health care agenda, urged lawmakers on Wednesday to expand health savings accounts even though congressional Republicans say that is unlikely in an election year.
"Health savings accounts really mean that the individual owns and controls their health care," Bush said in a state where 400,000 residents have no coverage. "Health savings accounts enable somebody to say, 'Look, if I make the right decisions about smoking and drinking or exercising that I'll end up saving money."'
The accounts allow people to set aside money, tax-free, to pay their health costs. To qualify, a person must purchase a health insurance policy with a high deductible. Such high-deductible policies require individuals to pay at least the first $1,050 in medical expenses each year; families have to pay the first $2,100.
Bush thinks people should be able to put enough money in the accounts to cover all their health insurance costs, not just the deductibles, as they can now. The Senate's top tax writer, Sen. Charles Grassley, R-Iowa, has cast doubt that lawmakers can enact Bush's proposals to expand health savings accounts during this election year.
In Connecticut, the GOP faces two tough midterm matchups that national political analysts are watching as Republicans work to retain control of Congress.
Rep. Christopher Shays, R-Connecticut, who rode to Connecticut aboard Air Force One, is being opposed by Democrat Diane Farrell. Rep. Nancy Johnson, R-Connecticut, faces a difficult race against state Sen. Chris Murphy.
On the way to the event in a city that leans Democratic, Bush's motorcade passed about 150 noisy protesters holding signs that read: "Bush and Shays, the war is wrong," "Fire the Liar" and "Bring the troops home now."
Bush didn't mention the war in Iraq, concentrating instead on health savings accounts. He said that more than 3 million people in the U.S. have signed up for the accounts, which he says can help small businesses continue to offer health care coverage.
Rep. Nydia Velazquez, D-New York, ranking Democrat on the House Small Business Committee, said the accounts are not helping close the gap between those with health insurance and the uninsured.
She cited studies showing that many businesses that have started offering health savings accounts already had offered health insurance to their employees. Overall, only 12 percent of individuals with high-deductible policies eligible for health savings accounts were previously uninsured, she said.
