Universal Health Savings Accounts

In Singapore, people are required to put 20% of their income into a Health Savings Account with a 16% employer match. This is known as MediSave. We could have something similar to that here in America: USAHealth (Universal Savings Accounts for Health).

USAHealth (name picked for branding)

For Liberals: Everyone is guaranteed some basic amount of healthcare.

For Conservatives: Everyone will learn personal responsibility through saving.

The Basics

A Health Savings Account (HSA) is a savings account that can be used for co-payments, deductibles, etc. health-related expenses that aren't premiums.

If you worry about acceptance, it's just money. Cash is always in-network.

To ensure that everyone gets this, we will need to do something first: Universal Administration. Everybody gets a Health and Human Services card (similar to a Medicare card) issued by the Department of Health and Human Services. Onto that card, the same information about each person is loaded:

  • Name, Date of Birth, other metadata
  • Health Insurance/Insurer Plan (if any)
  • Medical History (if any)
  • Health Savings Account information

The Details

Everyone's HSA will be topped up with $1000 every year in exchange for a 2% payroll tax with an employer match.

Why $1000 per year? Because first-year account holders save that much as is.

Could we really get $1000 for everyone with a 2% payroll tax? Yes. A 2% payroll tax would bring in $167.5 Billion in (an alternate universe's pandemic-free) 2021. Have that matched by an employer's 2% payroll tax and we have $335 Billion in revenues. Divide that $335 Billion by America's 330 Million people and we have just over $1000/person.

The HSAs won't be limited to the $1000. You could save more than that if you wanted (up to the current maximum).

Any monies that are collected and need to be distributed would be held in a Trust Fund, kept safe in case it's needed in the future. Like during an economic downturn which we may or may not find ourselves in right now.

(If anyone wants a simple way to get to Medicare for All, just have the HSAs overdraft from the Treasury's General Fund or the USAHealth Trust Fund)