Chamber Commends New Health Savings Account Incentives

WASHINGTON, D.C. – The United States Chamber of Commerce welcomed the introduction of Health Savings Account legislation to provide additional tax incentives for individuals and small businesses that enroll in a high-deductible health plan and contribute to a health savings account.

"These proposals provide meaningful assistance for individuals without employer-sponsored health coverage and for small businesses unable to afford to other health plan options," stated Kate Sullivan Hare, Chamber executive director of health policy. "As a national sponsor of Cover the Uninsured Week, the Chamber welcomes creative solutions to making health savings accounts work for more people, regardless of income or access to employer-sponsored coverage."

Recent market studies show 37 percent of new individual HSA owners were formerly uninsured. This is a testament to the affordability of high-deductible health coverage and the appeal of lifetime savings for health care needs.

The legislation introduced today by Senators Rick Santorum (R-PA) and Jim DeMint (R-SC) and Representatives Sam Johnson (R-TX), Eric Cantor (R-VA), Paul Ryan (R-WI) and J.D. Hayworth (R-AZ) provides an above-the-line tax deduction for individuals as well as a tax rebate for small business owners who contribute to employees' health savings accounts. In addition, the bills provide a refundable, advanceable tax credit for low-income individuals who purchase health coverage of any type; and the ability to use any remaining tax credit funds for a health savings account if they purchase high-deductible health coverage.

"Small businesses have been hit particularly hard by successive years of double-digit increases in health care costs," emphasized Sullivan Hare. "Congress and the administration must create more employer options for health plans and give those who purchase coverage on their own the same tax advantages as those who receive it through their jobs."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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