Health Savings Accounts
February 17, 2006
We’re hearing much these days about Health Savings Accounts, as more of us become aware that the present health care system, with its perverse incentives, is self-destructing. This article by economist Arnold Kling helped me to better understand some of the economic undercurrents.
EconLog, Health Savings Accounts, Arnold Kling: Library of Economics and Liberty
Another point that I would make is that the more you make a fetish out of taxing the rich, the more likely you wind up being opposed to anything that might increase private saving. You can preach about progressivity and you can preach about the need for increased saving, but not in the same sermon.
My problems with HSA’s are more that I have a general aversion to programs that are beloved by wonks and operate through the tax system. Maybe that makes them politically clever, but I think you lose a lot in terms of consumer clarity and economic efficiency.
At the “rich” end of the economic spectrum, high deductible catastrophic medical insurance makes good economic sense. At the “poor” end of the economic spectrum, it is clearly the Government’s responsibility to provide a health care safety net. For those of us in the middle, I’m not too sure what is the best answer. It will be interesting (I think) to see what kind of health care system emerges in the U.S., as the old fogey index continues to rise.
Dave, feeling a tad guilty about taking from Medicare, but taking it anyway.
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