126th Morrison Congress

2nd Session

H.R. 126-0

Title of the Bill: Medical Savings Account Act

Main Author(s): Rep. Esther Chen (R-CA), Rep. Jennifer Chin (R-MI), Rep. Nicholas
Tong (R-OH)

Co-Sponsor(s):

BE IT ENACTED BY THE MORRISON CONGRESS

1 SECTION 1: Findings
2 Congress makes the following findings:
3 1. According to the most recent data from the Centers for Medicare and
4 Medicaid Services (CMS), "the average American spent $9,596 on
5 healthcare" in 2012, which was "up significantly from $7,700 in 2007." (I)
6 2. According to Bloomberg Health-Care Efficiency Index, U.S. expenditures
7 averaged $9403 per person in 2014, about 17.1% of the gross domestic
8 product. The U.S. system tends to be more fragmented, less organized,
9 and coordinated, and thats likely to lead to inefficiency, said Paul
10 Ginsburg, Ph.D., from the University of Southern California. (VI)
11 3. It was more than twice the per capita average of other developed nations,
12 but still, in 2015, experts predicted continued sharp increases: "Health
13 care spending per person is expected to surpass $10,000 in 2016 and
14 then march steadily higher to $14,944 in 2023."(I)
15 4. The average annual costs per person hit $10,345 in 2016. In 1960, the
16 average cost per person was only $146 and, adjusting for inflation, that
17 means costs are nine times higher now than they were then. (I)
18 5. In 2015, approximately 23 percent of Americans ages 19 to 64 were
19 considered underinsured because of high health insurance deductibles (II)
20 6. 7% of adults declared bankruptcy as a result of medical bills. (II)
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SECTION 2: Purpose
23 This bill provides that medical savings accounts are established to ensure that all
24 U.S. citizens receive the right to make wise healthcare purchasing decisions.
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SECTION 3: General Provisions
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This act will require business managers to provide medical savings accounts for
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their workers by depositing money into their account. This specialized account is
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only medical-based. At the beginning of each year, the Medicare will provide the
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fund. This allows the people to make wise healthcare purchasing decisions by
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choosing their medical treatment and managing their healthcare costs.
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A medical savings account is self-managed like any other bank savings account.
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One main difference is that the account is funded with money from Medicare.
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You must meet the following requirements in order to qualify for the MSA:
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1. An employee of a small employer
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2. Or a self-employed employee
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Ones medical savings account will expire on the day of his or her decease. The
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deposits within the account of the deceased will be distributed to funeral-use, and
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his or her family will receive access to any leftover money.
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SECTION 4: Definitions
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Centers for Medicare and Medicaid Services (CMS): is a federal agency within the
45 United States Department of Health and Human Services (HHS) that administers
46 the Medicare program and works in partnership with state governments to
47 administer Medicaid, the Children's Health Insurance Program (SCHIP), and
48 health insurance portability standards.
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Medicare Medical Savings Account plan (MSA): is a special type of Medicare
50 Advantage plan. This type of plan may offer the freedom of choice for people who
51 want more control over their health care dollars and decisions. And along with the
52 freedom come some responsibilities.
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Small Employer: A small employer is generally an employer who had an average of
54 50 or fewer employees during either of the last 2 calendar years.
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Works Cited:
I.https://www.cnbc.com/2017/06/23/heres-how-much-the-average-american-spends-o
n-health-care.html
II.http://www.newsweek.com/many-americans-insured-cant-afford-health-care-334624
III.https://www.huffingtonpost.com/entry/uncovered-california-why-millions-have-fallen-i
nto-health-care-gaps_us_5772b358e4b017b379f78a51
IV.https://www.congress.gov/bill/110th-congress/house-bill/6569?q=%7B%22search%2
2%3A%5B%22healthcare%22%5D%7D&r=1
V.https://blog.medicaremadeclear.com/what-medicare-medical-savings-account-plan-3/
VI.http://www.clinicaladvisor.com/practice-management/us-healthcare-system-ranks-am
ong-least-efficient-in-world/article/560270/