Bill Overview
Title: Health Savings for Seniors Act
Description: This bill permits a Medicare beneficiary to participate in and contribute to health savings accounts.
Sponsors: Rep. Bera, Ami [D-CA-7]
Target Audience
Population: individuals aged 65 and older, and those with Medicare eligibility due to disabilities or medical conditions
Estimated Size: 63000000
- The bill allows Medicare beneficiaries to participate in Health Savings Accounts (HSAs).
- Medicare beneficiaries typically include Americans aged 65 and older, as well as younger individuals with disabilities and certain medical conditions.
- Globally, no other populations directly receive Medicare, as it is a U.S. program.
Reasoning
- The policy targets a specific demographic: Medicare beneficiaries, mostly aged 65 and older, and those with disabilities or specific health conditions.
- I aimed to include a diverse set of individuals who represent common segments within this population, such as retirees with varying financial situations and health issues.
- It's essential to consider the budget constraints when estimating the policy's reach and impact. Therefore, the interviews include some cases with limitations on how the policy might benefit individuals based on their existing health and financial situations.
Simulated Interviews
retired teacher (Florida)
Age: 68 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy might help me save some extra money for medical expenses.
- Medicare doesn't cover everything, and savings would give me peace of mind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
retired engineer (New York)
Age: 72 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- It's a step in the right direction, but it won't cover my larger medical expenses.
- I have a heart condition, and the long-term costs exceed any HSA benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
retired nurse (California)
Age: 78 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Health savings accounts seem useful for those who are better off.
- I'm not sure it would affect me much, as I can't afford to save more.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
retired IT specialist (Oregon)
Age: 66 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- This policy aligns with my needs since I'm already financially stable.
- It allows more flexibility in how I plan my finances for healthcare.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
retired farmer (Texas)
Age: 70 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 8.0 years
Commonness: 15/20
Statement of Opinion:
- I might benefit if I can find a good deal to contribute to an HSA.
- Not sure it will make a big difference due to my low income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 3 | 3 |
looking for part-time work (Ohio)
Age: 64 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 12.0 years
Commonness: 9/20
Statement of Opinion:
- Having an HSA will ease my transition into Medicare coverage.
- I can finally start planning better for my future healthcare needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
retired firefighter (Arizona)
Age: 75 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Setting aside more money for healthcare is always beneficial.
- I just hope the limits allowed are substantial enough to help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
retired administrator (Michigan)
Age: 68 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- It's a positive change to have tax-favored savings options.
- I may not get the full potential due to current financial stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
retired college professor (Illinois)
Age: 85 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- This helps in managing unexpected health expenses.
- However, at my age, I'm not sure how long the benefit will last.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
retired librarian (Virginia)
Age: 67 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 11/20
Statement of Opinion:
- An HSA might allow me more health freedom, but my choices are unconventional.
- It's hard to see direct benefits without more flexibility in HSA use.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Cost Estimates
Year 1: $200000000 (Low: $150000000, High: $250000000)
Year 2: $180000000 (Low: $130000000, High: $230000000)
Year 3: $160000000 (Low: $120000000, High: $200000000)
Year 5: $140000000 (Low: $100000000, High: $180000000)
Year 10: $100000000 (Low: $60000000, High: $140000000)
Year 100: $50000000 (Low: $20000000, High: $80000000)
Key Considerations
- The level of participation among Medicare beneficiaries in HSAs will significantly determine the actual cost and impact of the policy.
- Administrative costs for integrating HSAs with Medicare could fluctuate based on the implementation approach.
- Long-term savings for both the government and individuals are possible but uncertain, hinging on healthcare choices made by beneficiaries.