Agency Finds Average Adjusted Gross Income of Private HSA Beneficiaries Over $130,000 a Year
“It’s really that simple: Create consumers with information and tools with which to make decisions about their health care.” – Assembly Republican Health Chair Leah Vukmir, 8/07
“Few participants reported researching cost of physician or health services before obtaining care…” – Governmental Accountability Office, 8/06
Madison – State Sen. Jon Erpenbach (D-Middleton), chair of the Senate Health and Human Services Committee, said continuing Republican claims about the universal benefits of private health savings accounts are refuted by the non-partisan federal Government Accountability Office, which showed the benefit of private HSAs overwhelmingly went to the wealthy and failed to create substantial.consumer shopping.
“Republicans keeping touting private HSAs, which they say will benefit everyone and create consumer shopping, both of which the GAO has proven false,” said Erpenbach, architect of the Senate Democrats’ “Healthy Wisconsin” plan to reduce costs and cover all Wisconsinites. “It’s time Republicans stop repeating the talking points of insurance companies and speak up for the people of Wisconsin.”
The Government Accountability Office report, which was released in August 2006 in the midst of Republican control of the federal government, represents the first major non-partisan study of the effects of private health savings accounts and who benefits economically from government investment.
Among the findings of GAO-06-798 (click link above):
• The average annual gross income of all tax filers reporting HSA contributions was $133,000.
• Over half of all private HSA participants have annual adjusted gross incomes of $75,000. Those with this income represent only 18 percent of all taxpayers.
• Only 16 percent of all private HSA participants earn less than $30,000 a year. Those with this income represent half of all taxpayers.
“We’ve endured double-digit health insurance premium increases in Wisconsin for the past seven years and it’s breaking the banks of employers, employees and local governments,” said Erpenbach. “Everyone deserves the same health care we enjoy in the state legislature and we can’t afford one more day of Republican obstruction.”
