Introduced by Sen. Jeff Flake (R-AZ) and Rep. Dave Brat (R-VA), the Health Savings Account Expansion Act liberalizes and expands HSAs in a way that is consistent with changes I have long advocated and that are explained in “Designing Ideal Health Insurance.” It is a good piece of legislation which does many good things.

Among other commendable changes, the legislation would allow individual self-insurance to be combined with third party insurance in creative ways and this will be especially important to the chronically ill who are willing to manage more of their own care.

However, Cato Institute scholar Michael Cannon is making claims about the proposal that go far beyond what is actually there. Although I have not read the bill, I have looked at what the sponsors have said about it and they and Cannon seem to be worlds apart.