Bob Beauprez: “I am attempting to not overstate or overemphasize my enthusiasm for health savings accounts. But I honestly believe that…”

“I am attempting to not overstate or overemphasize my enthusiasm for health savings accounts. But I honestly believe that this may be as revolutionary an action that this body has considered in a very long time. The concept is a fairly simple and straightforward one, but it is so revolutionary that I think it bears some very careful consideration, and I thank the gentleman for his question. This is simply a personal account whereby an individual can make a tax-free, before-tax, contribution to that account, year after year, skip if they like, but an account that can accrue over time. It is again tax free going in. The earnings, the interest that is accrued on that account is tax free, and the real key is on the back end as long as they spend it for health care, it is likewise tax free. What that means is that over time that account can grow, and I think we are all familiar with 401(k)s and IRAs and those incentive mechanisms that this great body in previous Congresses has enacted to encourage us to save for retirement. Likewise, this encourages us to save, but coming out the back end, it is still tax free. They never ever pay a dime of tax on the money going in, the earnings on that money over however extended a period of time it happens to be, nor on the money as it comes out to pay for long-term health care, for specialty surgery, for catastrophic care, for whatever that individual finds himself in a situation to want or need in their advanced years.”