Barron's, December 26, 2005

Letters to the Editor

To the Editor:

I thoroughly enjoyed the editorial commentary on how to cure America's health-care system ("Shooting the Moon," Dec. 12). But I would like to add a bit of clarification. There are 45 million uninsured in America, but the vast majority of these people are uninsured for only a short period. If we look at people who go without insurance for two years, the number drops to 8 million.

Most of these chronically uninsured have jobs but choose not to purchase insurance. Why? Because it's so expensive. In New Jersey, for example, it's cheaper to lease a Ferrari than purchase a family health policy. The poor who are uninsured can enroll in Medicaid. But what about the 30% earning over $50,000? Or the 16% who earn above $75,000? Medicaid isn't an option for them. They need access to cheaper insurance.

That's why Health Savings Accounts are so important. They provide an affordable, tax-smart solution to the working uninsured. It's no surprise that 37% of those signing up for HSAs were previously uninsured.

Sally C. Pipes

Pacific Research Institute

San Francisco

Sally C. Pipes is president and CEO of the Pacific Research Institute, a San Francisco-based public policy think tank. She is the author of "Miracle Cure: How to Solve America's Health Care Crisis and Why Canada Isn't the Answer" and can be reached at spipes@pacificresearch.org.