According to the AARP, the "prices for about 200 prescription drugs commonly used by seniors in the

United States rose nearly twice the rate of inflation...making a case for letting the government negotiate

drug prices."

Middle-class Americans are increasingly unable to afford health insurance. "Today, more than one-third

of the uninsured -- 17 million of the nearly 47 million -- have family incomes of $40,000 or more, according to

the Employee Benefit Research Institute, a nonpartisan organization. More than two-thirds of the uninsured

are in households with at least one full-time worker."

HEALTH SAVINGS ACCOUNTS NOT OFFERING SAVINGS: Last year, Bu$h's health care proposals

in his State of the Union address focused on expanding health savings accounts (HSAs), and this year,

he will likely do the same. According to the Bu$h administration, these special medical savings accounts

will "allow people to save tax-free for health-care needs provided they choose low-cost, high-deductible

coverage. The ultimate idea is to expand health-care coverage while reducing cost pressures, in part by

giving people more of a financial incentive to be smart shoppers." But in reality, HSAs disproportionately

benefit the wealthy. The Government Accountability Office (GAO) found "that the average income of HSA

users was $133,000 in 2004, compared to $51,000 for all non-elderly tax filers." Additionally, these HSAs

are being used as tax shelters for the wealthy. In 2004, the "majority of people with HSAs withdrew no

funds from the accounts...and HSA participants in the focus groups that the GAO convened spoke of using

their HSAs for tax sheltering purposes." Most low-income individuals "do not face high enough tax liability

to benefit in a significant way from tax deductions associated with HSAs" and people "with chronic conditions,

disabilities, and others with high-cost medical needs may face even greater out-of-pocket costs under HSA-

qualified health plans." Multiple studies have shown that HSAs are likely to increase the number of uninsured

and increase health care costs, all while costing taxpayers tens of billions of dollars.

Newspaper and magazine health coverage will be reviewed online at a new web site,

www.HealthNewsReview.org.  A team of 20 reviewers from universities and clinics

across the country write the critiques.  The site is helpful in improving information

you receive on developments in health and medicine.

HEALTH CARE -- PAYING MORE, GETTING LESS: The U.S. health care system is in shambles.

Health care costs are increasing faster than wages and nearly 47 million Americans -- 8 million of

whom are children -- are uninsured. Millions more are underinsured. Yet the United States continues

to spend more on health care per person than any other country, including countries that provide health

care coverage to its entire citizenry. According to a new report by the Kaiser Family Foundation, in

2003 alone, health spending per person was at least 24 percent higher than that of Luxembourg (the

second highest spending country) and over 90 percent higher than countries considered global competitors.

But unfortunately, our health care system spending is not buying us superior health. Americans, on average,

die at a younger age compared to the average age of death of comparable nations and the U.S. infant

mortality rate is 6.9 deaths per 1,000 live births, while Japan and Sweden have rates below 3.5 deaths

per 1,000 live births. Additionally, U.S. health care resources continue to lag. About 70 percent of deaths

and health costs in the U.S. are attributable to chronic disease, which are largely preventable. Yet, only

half of recommended preventive services are provided to adults. The United States also has fewer

practicing physicians and nurses per 1,000 people than comparable countries.

In his 2006 State of the Union address George W. Bu$h announced the centerpiece of his efforts

to reform health care would be tax breaks for people to pay for their own health care, including

Health Savings Accounts (HSAs), in which people replace traditional insurance coverage with

their own savings. HSA-based health care would be a disaster for working families, a giant step

backward that would shift costs away from employers to employees and their families and force

many people to go without needed care.

Here are a few things you should know about HSAs:

The idea behind Health Savings Accounts is that Americans have too much insurance.

You read that right. Those who came up with the idea believe Americans are over-insured,

something that very few working families would likely agree.

Despite the rhetoric, HSAs will do nothing to control skyrocketing health care costs or reduce

the number of uninsured. In fact, they will just make matters worse for those who have health

coverage.

By shifting the costs to workers, HSAs provide cover to employers to reduce or even eliminate

health benefits. It will undermine employer-based health plans, where two-thirds of Americans

get their coverage.

HSAs will drive the wealthy and healthy away from health care insurance, driving up the costs

for those who need insurance the most. Seniors and those who need health care coverage will

see their premiums skyrocket.

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.

At a time when we are working hard on the state and federal level to give more working families

the coverage they need, President Bu$h’s commitment to an idea that would reduce coverage

is baffling.

Like his proposal to privatize Social Security, giving more tax breaks for HSAs will go nowhere

if Congress sees massive public opposition to Bu$h’s bad ideas. (And like Social Security

privatization, the political push is being bankrolled by Big Business, including the

banking and insurance industries.)

Health Savings Accounts will reduce health care coverage and increase

costs for working families.  America deserves the best health care coverage

for all of its citizens.