Latest Assault on Workers: Health Savings Accounts

Labor leaders say the health savings accounts President George W. Bush mentioned in his State of the Union speech Tuesday would be a disaster for working families and another gift to corporate America.

"These accounts would actually increase the burden on workers, while giving employers incentive to cut back or eliminate their plans altogether," CWA President Larry Cohen said. "Business likely will reap billions from health savings accounts, but 45 million Americans will remain uninsured and millions more underinsured."

Presently, about two-thirds of America workers are covered by employer-sponsored plans, though premiums are skyrocketing and services are being slashed. Replacing traditional insurance with health savings accounts would only make matters worse, Cohen said.

The AFL-CIO reminded union families that "HSAs are brought to you by the same people who brought you the Medicare prescription drug disaster, and it will have the same consequences. It's a boon to the profit-driven drug companies and insurance industry. It's complicated, fragmented and costly."

Cohen said the only meaningful option for health care reform is universal system with access to medical care for every American. "In every other industrialized country, without exception, universal health care is in place. Most countries cover all citizens for about half of what we spend here on health care, which last year was a staggering 14 percent of our Gross Domestic Product.

"It's no coincidence that these countries have much greater union representation than in the United States, where the right to join a union and bargain a fair contract is under assault," he said. "Industrialized nations that respect workers' rights also see the public good of guaranteeing health care for all."

Cohen and the AFL-CIO are urging working families to contact their members of Congress and let them know they won't stand for the Bush administration's latest scheme.

"Like his proposal to privatize Social Security, giving more tax breaks for HSAs will go nowhere if Congress sees massive public opposition to Bush's bad ideas," the AFL-CIO said. "That's why we need you to take action immediately."

For many more details about health savings accounts, go to www.aflcio.org/issues/healthcare/hsa.cfm or simply go to www.aflcio.org and click on "Health Savings Accounts."