1. HDHP
HSA
Obamacare

2. AMERICAN HEALTH INSURANCE
A way for people to collectively pool the risk of incurring ruinous medical expenses
In any given year the people who do not use their insurance will pay for other sick people’s care
20% of uninsured Americans were offered health care from their employer but declined getting it
-Daniel Polsky, Rebecca Stein and Sean Nicholson

3. HDHPs WILL MAKE HEALTH CARE PRICES TRANSPARENT
“The price that people are willing to pay for products determines what is produced, the cheapest way to produce these things, and how much each person has to spend on the market.”
-Milton Friedman Pe Qe

4. HEALTH SAVINGS ACCOUNTS (HSAs)
An HSA is a tax-free medical savings account that is available to any American with qualified health insurance.
The individual owns the account
Account owner determines the cost of her health care
Money not spent on qualified medical expenses rolls over year after year.
HSA account holders will incur little to no out-of-pocket costs and will be protected from catastrophic medical expenses if subject to HDHP
HSAs with HDHPs yield low premiums
Price elasticity across insurance plans would be significant

5. DOUGHNUT HOLE: 33% OF TOTAL HEALTH CARE EXPENDITURES THAT WOULD FALL BETWEEN $664 AND $6,444