Question
Health Care > Health Insurance > Health Savings Account
Improve and expand Health Savings Accounts (HSAs)
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Background
Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003 and are designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis.
[http://www.treas.gov/offices/public-affairs/hsa/]
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. Funds may be used to pay for qualified medical expenses at any time without federal tax liability. Withdrawals for non-medical expenses are treated very similarly to those in an IRA account in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. These accounts are a component of consumer driven health care.
Proponents of HSAs, including the Bush Administration, believe that they are an important reform that will help reduce the growth of health care costs and increase the efficiency of the health care system. According to proponents, HSAs encourage saving for future health care expenses and encourage the adoption of High-Deductible Health Plans, which make consumers more responsible for their own health care choices. Opponents of HSAs say they worsen, rather than improve, the U.S. health system's problems. There is also considerable debate about consumer satisfaction with these plans.
see more on Wikipedia
[http://www.treas.gov/offices/public-affairs/hsa/]
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. Funds may be used to pay for qualified medical expenses at any time without federal tax liability. Withdrawals for non-medical expenses are treated very similarly to those in an IRA account in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. These accounts are a component of consumer driven health care.
Proponents of HSAs, including the Bush Administration, believe that they are an important reform that will help reduce the growth of health care costs and increase the efficiency of the health care system. According to proponents, HSAs encourage saving for future health care expenses and encourage the adoption of High-Deductible Health Plans, which make consumers more responsible for their own health care choices. Opponents of HSAs say they worsen, rather than improve, the U.S. health system's problems. There is also considerable debate about consumer satisfaction with these plans.
see more on Wikipedia
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