11.4 Million Americans Could See Higher Taxes — AND Lose Their Current Coverage
America’s Health Insurance Plans released their annual Health Savings Account survey this morning, which found that at least 11.4 million Americans participated in high-deductible health plans associated with HSAs – an increase of 14% compared to last year’s report. This increase is particularly noteworthy because of provisions in Obamacare that could harm HSA users:
- Individuals now cannot use HSA funds for over-the-counter medications without first obtaining a doctor’s prescription. The Wall Street Journal previously noted how this provision is causing paperwork headaches for patients and physicians alike.
- HSA users who withdraw funds for non-health purposes are subject to higher penalties – increases that could make HSAs a less attractive savings vehicle compared to IRAs and 401(k)s.
- Obamacare’s essential health benefits package contains new restrictions on deductibles and cost-sharing that will prevent at least some current HSA plans from being offered.
- Worst of all, many more individuals could lose their HSA plan, depending on how HHS bureaucrats define “insurance.” The law does not specify that cash contributions made to an HSA will be counted towards the new minimum federal requirements. Section 1302(d) of the statute states very clearly that those parameters will be defined “under regulations issued by the Secretary.” Despite requests from state governors for clarity on this issue, the Secretary has refused to answer whether HHS will give all HSA plans a “safe harbor” to allow individuals to keep their current HSA plan. (HHS has provided waivers that have gone disproportionately to union plans – why shouldn’t HSA participants get a waiver from this Obamacare mandate…?)
Below are data from the AHIP report providing state-by-state enrollment data – so you can see how many constituents in your home state could have their coverage affected by the Obamacare provisions outlined above. As a reminder, candidate Obama promised that “For those who have insurance now, nothing will change” – and that middle-class families would not see “any form of tax increase – not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” Today’s report once again illustrates how candidate Obama’s rhetoric has fallen short when compared to the reality of the law President Obama signed.
Alabama 77,311
Alaska 33,709
Arizona 174,270
Arkansas 55,653
California 1,073,319
Colorado 347,002
Connecticut 212,935
Delaware 34,356
District of Columbia 16,873
Florida 656,243
Georgia 315,251
Hawaii 1,432
Idaho 49,446
Illinois 690,509
Indiana 384,772
Iowa 132,175
Kansas 71,440
Kentucky 153,444
Louisiana 201,535
Maine 60,195
Maryland 335,493
Massachusetts 115,406
Michigan 408,758
Minnesota 507,307
Mississippi 32,526
Missouri 177,925
Montana 59,346
Nebraska 120,732
Nevada 53,121
New Hampshire 74,350
New Jersey 262,938
New Mexico 23,035
New York 452,031
North Carolina 310,834
North Dakota 14,865
Ohio 728,868
Oklahoma 68,841
Oregon 107,407
Pennsylvania 297,869
Rhode Island 28,470
South Carolina 158,600
South Dakota 19,393
Tennessee 276,725
Texas 844,832
Utah 107,886
Vermont 42,006
Virginia 223,671
Washington 230,459
West Virginia 19,545
Wisconsin 301,216
Wyoming 13,851
Uncategorized* 276,989
United States 11,437,165