Wyden Report Shows How GOP Health Tax Scheme Funnels Money to Big Banks and Insurance Companies While Sticking Families with High Costs
New Brief From Committee Minority Staff Reveals UnitedHealth Group Subsidiary As Largest Operator of Health Savings Accounts in the Nation
Tax-Preferred Savings Accounts Are Not a Replacement for Health Insurance and Will Leave Americans Unable to Afford Their Health Care
Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today released a new report demonstrating how nascent Republican concepts to give pre-funded tax-preferred health accounts to Americans who buy health insurance on their own will funnel those dollars to big banks and big insurance companies, while failing to protect these Americans from high health costs. The report comes as Republicans continue to refuse to extend enhanced Premium Tax Credits for more than 20 million Americans who count on them to afford their health insurance premiums.
“Republicans refuse to help Americans lower their premiums,” Wyden said. “Half-baked ideas that put more taxpayer dollars into health tax accounts will enrich big banks and insurance companies while saddling Americans with high premiums and deductibles. Sending a few thousand dollars to Americans isn’t going to do them much good when they face a giant medical bill for a serious health diagnosis or even routine but expensive care, like giving birth in a hospital. The only solution to help these Americans in the next several weeks is a clean extension of the tax credits.”
The report finds that contrary to Republican talking points, big insurance companies have a hand in these health tax accounts. One out of every five Health Savings Accounts (HSAs) in the nation is operated by Optum Bank, a subsidiary of UnitedHealth Group. Additionally, other financial institutions stand to gain from administering these accounts, resulting in higher costs passed along to consumers.
Instead of scrambling for an eleventh-hour so-called “solution,” Republicans should work with Democrats to extend the enhanced Premium Tax Credits next year so the more than 20 million Americans who count on this coverage will not see their premiums double next year.
The full report can be found here.
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