Medicaid HSAs

The cost of Medicaid has been identified as the number one budget demon in many states and has begun to affect millions of deserving beneficiaries who are being subjected to increasingly rationed care, exemplified by programs such as Tennessee's TennCare. The HSA concept deserves front-burner attention for the Medicaid population.



It is possible to rethink completely how states manage their programs and to consider allowing them to issue HSAs in lieu of the current government-run payment system. The same savings potential and management controls inherent in private-sector HSAs are also attainable for the states. This is an idea worth exploring.