Bush Pushes Health Care Account Plan to Wendy’s Employees in Ohio

During a visit to Dublin, Ohio this week, President Bush pitched his plan for making health care more accessible by creating tax breaks for health savings accounts to fast food chain Wendy’s employees .

Opponents, however, say the accounts merely shift the burden of paying for health care from employer to employee and don’t help low-income workers who cannot afford them.

Bush said the health insurance savings accounts allow consumers to be more involved in choices about their care during a visit Wednesday to this Columbus suburb, home of Wendy’s International Inc., the nation’s third-largest hamburger chain. About 9,000 Wendy’s employees have health insurance savings accounts, according to an Associated Press story.

Bush chose Wendy’s because it’s one of the largest companies aggressively pursuing the idea, said John McClelland, spokesman for the Ohio Republican Party.

“Most Americans have no idea what the cost of medical care is,” Bush said.

Because third parties such as insurance companies pay for most costs, consumers have no reason to worry about the price tag of their health care, Bush said. Without pressure from consumers, providers have no incentive to lower their costs and end up charging more, which leads to higher insurance premiums, he said.

The insurance companies pass on increased costs to you and your family Bush said.

The visit is Bush’s 39th to Ohio since taking office and fifth since his 2004 re-election.

Enrollment in the high-deductible insurance plans has tripled over the past 10 months. Bush seeks to keep that rate going by letting consumers put enough money in the accounts to cover all their health insurance costs, not just deductibles, as provided by current law. This would allow them to set aside more money tax-free.

Bush also said he wants to let employers make higher contributions to health savings accounts for the chronically ill. Under current law, employers must contribute the same amount to each employee’s account.

The United Health Care Network of Ohio, a coalition of health care unions and doctors, nixed the Bush plan saying it would have little effect on the highest costs of health care, catastrophic and life-ending illnesses.

Bush outlined the plan in his State of the Union speech Feb. 1.

Source: Associated Press

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Received Id 1018612562 on Feb 15 2006 18:27

Topics Ohio