Media Advisory:
May 31 2006 Contact: Susan Martin, Press Office
415-955-6120 or smartin@pacificresearch.org This week the California Assembly is expected to vote on legislation AB 2281, a bill introduced by Assembly member Wilma Chan (D-Oakland) that would limit the amount that high-deductible health insurance plans could require people to pay out-of-pocket for medical treatment and hospitalization. The bill would place annual limits on co-insurance costs, deductibles, and copayments. “AB 2281 reduces insurers’ freedom to offer high-deductible health plans at low cost by forcing them to offer first-dollar coverage for government-defined “preventive care” and low co-insurance rates,” said John R. Graham, director of health care studies at the Pacific Research Institute. “The bill virtually guarantees that the cost of health care in California, and the number of Californians without health insurance will increase,” he said. “By abolishing a beneficiary’s right to seek out the best health plan for him and his family, AB 2281 reduces the welfare of all Californians.” According to Mr. Graham, the advocates of government-run health care are scared. Nearly six million Americans are enrolled in high-deductible health plans such as Health Savings Accounts, and they are rapidly growing in popularity. “It’s no wonder those who prefer that the state, rather than the individual, control health care dollars want to kill it in the cradle,” said Graham. In order to give patients greater control of their health care, Mr. Graham supports an expanision of Health Savings Accounts (HSAs). “If Assemblywoman Chan and consumer-advocacy groups really want to help patients, they should work to repeal the California Sick Tax, which prevents Californians from deducting their HSA contributions from taxable income, and thereby encourage more Californians to open HSAs,” said Mr. Graham. “California is one of the last states that taxes its residents for taking responsibility for their own health care.” ### About PRI
For 27 years, the Pacific Research Institute (PRI) has championed freedom, opportunity, and individual responsibility through free-market policy solutions. PRI is a non-profit, non-partisan organization. For more information please visit our web site at http://www.pacificresearch.org/ | 
