Here’s another example how the House Health Care bill serves to perpetuate the problem with our Health System. Flexible spending accounts, which are tax exempt savings accounts that can be used to reimburse medical services, will be capped at $2,500 dollars.
The primary reason that medical costs are so high, is that the consumer has been removed from the process. States and insurance companies negotiate reimbursement rates with Medicare and participating providers. Most consumers have been conditioned to never evaluate services based on price and value, we only check to see if we’re “covered.”
At least with flexible spending accounts, consumers stand to benefit by shopping for the best price. Applying this model across the health care spectrum would force medical providers to compete for customers and drive down prices. Insurance policies would then be reserved for catastrophic expenses and wouldn’t be paying out for every little trip to the doctor.
What possible reason could there be for placing this cap on accounts? The Democrats must place a limit on how much money a citizen can save, tax exempt. This is yet another tax increase on citizens who have the good sense to utilize these accounts.
The House and Senate Health Care Bills are not remotely concerned with addressing high medical costs. They are entirely concerned with expanding government control over the nation’s Health Care System.