By Shapleigh                                          S.C.R. No. 19
         77R2986 MKS-D                           
                                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.