The popularity of health savings accounts for the poor will be put to the test in Indiana under a program approved Friday by the Bush administration. This according to a story published by The Associated Press and carried on WJLA.com. Under the plan, someone making $20,000 a year could get health coverage for about $19 a week.
According to the report, under the Indiana program, eligible residents can pay up to 5 percent of their incomes into state-subsidized “Personal Wellness and Responsibility Accounts” that cover their initial medical expenses up to $1,100. Once that deductible is reached, private insurance purchased by the state kicks in.
The story reported that eligibility is limited to adults with incomes below twice the federal poverty level. The poverty level is now $10,210 for an individual and $20,650 for a family of four.
Obviously, the Health Plan Innovation Blog and other will be watching closely the results of this program and the implications it might have for providing health insurance coverage for the poor.