HSA Plan for Fed. Workers Unveiled

HSAs initially were implemented under Medicare legislation that was passed last December. Opponents of the plans have argued that HSAs appeal mainly to younger, healthier individuals who would benefit from low health costs and have balances and credits remaining at the end of the year. Those individuals expecting higher health care costs, typically those who are older or more likely to get ill, would then be more likely to face higher premiums in traditional health insurance plans.

Among those making such an argument was Rep. Jim Moran, D-Va., on the House floor last week during debate on an amendment he offered to an appropriations bill that would have effectively barred the government from offering HSAs.

"The phenomenon is called adverse selection," Rep. Moran said. "And it forces insurance carriers to raise premiums, to cut benefits, in fact, to squeeze the people who need health insurance coverage out of the market."

Moran's amendment, which specifically would have barred the government from using any of the appropriated funds for the Treasury, Transportation and other agencies to offer HSAs, was defeated 223 to 183 in a largely partisan vote.