Calif. insurance commish condemns HSAs

California's insurance commissioner is expected to release a report this morning highly critical of health savings accounts (HSAs) and the trend in healthcare towards "consumer driven plans." Commissioner John Garamendi's report concludes that California's healthcare system is headed towards "a complete breakdown." Garamendi, a Democrat who plans to run for lieutenant governor in 2006, is a supporter of universal coverage.

The report notes that the cost of healthcare premiums has risen 61 percent in California since the year 2000, far outpacing the rate of inflation. Garamendi is particularly critical of one new designer plan often singled out as a success story: WellPoint's Tonik insurance plan. In an interview with the Los Angeles Times, Garamendi said such plans can leave consumers without coverage in emergencies, forcing the state to bear the cost of providing care for catastrophic illness.

- see this story from the Los Angeles Times

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