By Isett H.C.R. No. 115
77R2986 MKS-D
HOUSE CONCURRENT RESOLUTION
1-1 WHEREAS, Individuals who are not covered by employer-provided
1-2 health insurance often face the daunting prospect of having to
1-3 purchase costly private health insurance, which typically entails
1-4 either high monthly premiums or relatively high deductibles at more
1-5 affordable monthly rates, or else to forgo health insurance
1-6 altogether; those who purchase private insurance are further
1-7 penalized since individual policies are not tax-deductible, adding
1-8 to their already burdensome health care costs; and
1-9 WHEREAS, For such individuals, medical savings accounts
1-10 (MSAs) offer an innovative alternative to high-premium insurance
1-11 policies by combining tax-free savings accounts and high-deductible
1-12 catastrophic health insurance policies; and
1-13 WHEREAS, Individuals choosing to use these accounts pay for
1-14 routine and minor medical services with funds set aside in a
1-15 tax-free savings account, while major health care costs are covered
1-16 by their health insurance policies; and
1-17 WHEREAS, In addition to making health insurance more
1-18 affordable for persons who otherwise would be uninsured or
1-19 underinsured, tax-free MSAs encourage individuals to make wise and
1-20 economical decisions when making choices about their health care,
1-21 since self-insured individuals often are made more aware of the
1-22 true cost of health care than those covered by employment-based
1-23 plans; MSAs also offer greater access and freedom to obtain medical
1-24 services; and
2-1 WHEREAS, Despite lower than expected participation rates to
2-2 date, the MSA program has significant potential; preliminary
2-3 research from a 1996 demonstration program shows that 40 percent of
2-4 the people purchasing the plan were previously uninsured,
2-5 suggesting that, as the program continues to gain popularity, it
2-6 may be an effective way to reduce the number of uninsured; and
2-7 WHEREAS, The MSA pilot program was scheduled to end December
2-8 31, 2000, but certain aspects of the program evaluation indicate
2-9 that it may be important not only to renew but to expand the
2-10 program; research indicates that restrictions placed on the pilot
2-11 program may have suppressed full response and created confusion
2-12 among potential applicants, insurance companies, and employers; and
2-13 WHEREAS, Removing existing barriers in MSA legislation would
2-14 encourage greater participation among consumers and insurance
2-15 companies, and eliminating financial limits in the program would
2-16 encourage additional coverage in areas such as mental health
2-17 services and prescription drugs; and
2-18 WHEREAS, Most importantly, continuing and expanding the use
2-19 of MSAs will make quality health care affordable to people at all
2-20 economic levels with varying needs of health care; now, therefore,
2-21 be it
2-22 RESOLVED, That the 77th Legislature of the State of Texas
2-23 hereby respectfully request the Congress of the United States to
2-24 renew and expand the medical savings account program and remove
2-25 program limitations to encourage greater use of such accounts; and,
2-26 be it further
2-27 RESOLVED, That the Texas secretary of state forward official
3-1 copies of this resolution to the president of the United States, to
3-2 the speaker of the house of representatives and the president of
3-3 the senate of the United States Congress, and to all members of the
3-4 Texas delegation to the congress with the request that this
3-5 resolution be officially entered in the Congressional Record as a
3-6 memorial to the Congress of the United States of America.