Congressman Michael C. Burgess (TX-26) and Rep. Mike Rogers (MI-108) introduced the Medicaid Health Opportunity Act of 2005 which would help many of our most vulnerable Americans, including families whose resources were devastated by Hurricane Katrina, as they work to manage their health care needs with Health Opportunity Accounts (HOAs).

The Medicaid Health Opportunity Act of 2005 will give states the option to enroll Medicaid beneficiaries into flexible consumer based accounts. Health Opportunity Accounts will prioritize utilization of preventative services and controlling spending that will create financial incentives for both beneficiaries and the taxpayer.

“Giving Medicaid beneficiaries more control over their care will not only improve their health in the long-run, but will also help shore up a floundering Medicaid program,” said Congressman Michael Burgess, one of the main sponsors of H.R. 3757. “Given the right incentives, Medicaid enrollees can better utilize their health care dollars to manage their care. Health Opportunity Accounts are just what states need return the focus on Medicaid on quality health outcomes, not the same bloated program that will become more and more of a burden for all involved.”

The measure calls for a five-year, 10-state demonstration program that is voluntary and would support the following beneficiary goals:

 Creating patient awareness of the high cost of medical care
 Providing incentives to patients to seek preventive care services
 Reducing inappropriate use of health care services
 Enabling patients to take responsibility for health outcomes
 Providing enrollment counselors and ongoing education activities


Eligible individuals would basically include low-income individuals, who are not disabled or elderly, and low-income families and children. Unused state and federal contributions to the accounts would roll over each year and the accounts would remain available to individuals for withdrawals even after they leave the Medicaid program. At that point, individuals could use funds to purchase health insurance coverage, or for job training and tuition expenses.

Although this type of program could be initiated now by states, the process is convoluted and timely. This would provide incentives and ease the process of implementation.

The Medicaid Health Opportunity Act of 2005 is expected to be referred to the Energy and Commerce Committee of which Congressman Burgess is a member.