Study proposes lower deductibles but would eliminate HSAs, sparking policy debate

Georgetown scholars have outlined a three-part plan to cut health-insurance costs by capping annual deductibles at $1,000 for individuals and $2,000 for families. Because HSAs require a qualifying high-deductible plan, the proposal would effectively phase out these accounts. Prior research of more than 76,000 workers found HSA participants spend roughly 5%-7% less on health care than those in traditional plans.

The study acknowledges that lower deductibles shift costs to insurers, likely raising premiums, and that removing HSAs would reduce patients’ ability to save tax-free for medical expenses. The authors suggest expanding HSA-compatible options on the Obamacare exchanges and providing targeted assistance to low-income households instead of ending HSAs. They argue preserving HSAs would keep patients incentivized to shop for value while maintaining access to lower-premium coverage.