S 1399 Session 110 (1993-1994)
S 1399 Concurrent Resolution, By T.W. Mitchell
Similar(H 5161)
A Concurrent Resolution to memorialize the Congress of the United States to
promptly enact legislation to provide for medical care savings accounts.
05/03/94 Senate Introduced SJ-7
05/03/94 Senate Referred to Committee on Medical Affairs SJ-7
A CONCURRENT
RESOLUTION
TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES
TO PROMPTLY ENACT LEGISLATION TO PROVIDE FOR
MEDICAL CARE SAVINGS ACCOUNTS.
Whereas, thirty-seven million Americans are without health insurance
and many more are under-insured because of the effects of rising
health care costs. The costs of health care are escalating by as much
as seventeen percent each year. This has forced employers to trim the
level and availability of health care benefits to their employees; and
Whereas, polling of citizens shows that a substantial majority feel that
affordable health care is the number one economic issue facing them;
and
Whereas, over-utilization of medical services for relatively small
claims is one of the most significant causes of health care cost
increases. More than two-thirds of all insurance claims for medical
spending are less than three thousand dollars each year for families in
this country; and
Whereas, the concept of medical savings accounts has developed in
response to the runaway cost increases of health care in this country.
This initiative is designed to bring market forces to bear on health care
and its financing. It is predicated on providing incentives to eliminate
unnecessary medical treatment and encourage competition in seeking
health care; and
Whereas, through employer-funded medical care savings and reduced
cost catastrophic insurance policies, millions of Americans could
insure themselves for both routine and major medical services. Under
the concept of medical care savings accounts, an employer making
annual premium payments of four thousand five hundred dollars per
employee each year, the national average, would invest three thousand
into a medical care bank account for each employee. From this
amount, the employee would pay the first three thousand dollars of
medical expenses. The remaining one thousand five hundred dollars
of the employer's contribution would go toward the purchase of a
group policy to cover catastrophic medical costs up to a specified
limit. Any of the three thousand dollars not used to pay incurred
medical bills belongs to the employee. This would be a strong
incentive for people not to abuse health expenditures, and this concept
also makes it more feasible for low income workers to seek preventive
care and early intervention which they might otherwise be forced to
forego due to high deductibles in traditional policies; and
Whereas, by making medical care decisions the employee's
prerogative, individuals have a strong stake in reducing costs. This
simple financial mechanism also will expand health insurance options
to others who presently have no insurance. Most importantly, this
move to decrease health care cost burdens in this country would
require no new federal bureaucracy and would be revenue neutral to
employers. Now, therefore,
Be it resolved by the Senate, the House of Representatives concurring:
That the members of the General Assembly of South Carolina hereby
memorialize the Congress of the United States to promptly enact
legislation to enable Americans to establish medical care savings
accounts.
Be it further resolved that copies of this resolution be forwarded to the
President of the United States Senate, the Speaker of the United States
House of Representatives, and each member of the South Carolina
Congressional Delegation.
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