Republican pitches health savings accounts ‘on steroids’ that Americans could use to buy insurance — and steak
In the midst of ongoing debates about the future of healthcare in the United States, Rep. Eric Burlison (R-Mo.) has proposed a bold new initiative aimed at revolutionizing how Americans access health insurance. His idea, dubbed the Make America Healthy Again (MAHA) account, seeks to create a more flexible and consumer-oriented approach to health insurance, akin to an enhanced health savings account (HSA). This innovative concept would allow individuals to establish their own accounts, funded by employer contributions that would typically go toward insurance premiums. By doing so, Burlison envisions a system that empowers consumers to make informed choices about their healthcare options, while also promoting healthier lifestyle decisions through the ability to purchase nutritious foods with pre-tax dollars.
Burlison’s proposal comes at a time when Congress is grappling with the complexities of the Affordable Care Act (ACA) and the rising costs of healthcare. He argues that current HSAs, which allow individuals to save tax-free for specific medical expenses, fall short by excluding health insurance purchases from their permissible uses. By removing these restrictions, the MAHA account would enable users to select from a broader range of insurance products, potentially fostering competition and leading to more affordable options. Furthermore, Burlison highlights the dual purpose of these accounts: not only would they facilitate better healthcare choices, but they would also incentivize healthier eating habits by allowing individuals to purchase unprocessed, nutritious foods, thereby addressing the broader public health issue of diet-related illnesses.
As lawmakers on both sides of the aisle seek solutions to the escalating healthcare crisis, Burlison’s proposal reflects a growing Republican focus on consumer choice and reduced government intervention. The idea of creating a new financial product distinct from existing HSAs underscores the urgency for innovative approaches in a landscape where bipartisan agreements on healthcare reform have become increasingly elusive. With the potential to reshape how Americans think about health insurance and wellness, the MAHA account could be a significant step toward addressing the multifaceted challenges of the healthcare system, although it remains to be seen how this concept will be received within the broader context of ongoing legislative efforts.
Amid the current Obamacare fight plaguing Congress, Rep. Eric Burlison, R-Mo., envisions a new kind of program that could help users purchase health insurance — and steak — similar to health savings accounts (HSAs).
“This new product would basically be a super HSA on steroids connected to a cafeteria plan that’s connected to charitable donations,” Burlison said.
“Imagine, instead of getting your insurance through your employer, you go out and create your own account. We’ll call it a MAHA account, OK? And in that account, your employer would then deposit the money that they would normally pay to subsidize your premium,” Burlison said, referring to the Make America Healthy Again slogan used by the health-focused wing of the GOP.
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Burlison’s proposal, which follows calls from President
Donald Trump
to reroute federal dollars for health insurance assistance straight to policyholders, would require a complete overhaul of how HSAs work. His proposal is also emblematic of efforts to eliminate current policy restrictions Republicans believe limit consumer choice and flexibility when it comes to healthcare.
Under their current framework, HSAs provide users with a tax-free account that can be set up with a bank or insurance company.
“An HSA is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur,” the
IRS states.
Every year, the IRS puts out a list of expenses HSA holders can use their accounts for. These can include anything from massage therapy guns to Warby Parker glasses.
The list currently excludes health insurance.
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Burlison believes that by eliminating that restriction, his new accounts could help users make more careful decisions about their policies and give users a way to find alternatives to plans offered under the Affordable Care Act (ACA), also
known as Obamacare.
“From that account, then you can pick any insurance product you want to buy. So, if you want to buy a state-sponsored plan, if you want to buy an ACA plan — I wouldn’t buy an ACA plan because there’s so many other better products out there,” Burlison said.
in addition to healthcare, he believes the accounts’ restrictions should be used to incentivize better health-centered decisions through the accounts’ tax-exempt status.
“We want to encourage people to be healthy by letting them purchase healthy food, protein, produce,” Burlison said.
“Imagine you take your card, you go to the grocery store, and you know that the money that you put in that card was pre-tax money, and now you can go and buy steak or go buy chicken, go buy lettuce, whatever you want — as long as it’s unprocessed, healthy food. We’re encouraging people to be healthy and to eat healthy.”
Burlison noted that what he’s envisioning goes well beyond the current structure of HSAs and would likely require the creation of a new kind of account.
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“At the end of the day, this is such a new concept that I think it’s probably best to just leave HSAs intact and create this new product,” Burlison said.
Burlison’s idea on HSAs is just one of many ideas Republicans have floated as an increasing number of lawmakers have wanted to
address rising healthcare costs
while also balancing questions about government involvement in subsidizing those costs.
Amid questions about whether to extend COVID-era subsidies for the program passed as a response to COVID-19, Republicans are also weighing whether to restructure the Obamacare framework or find a new framework altogether.
