Monday, January 14, 2008

2008: A Good Year for Health Savings Accounts

By Diana Ernst

Categories: HSAs, etc.

HSAs are still young, but they are part of a burgeoning reform movement called consumer-driven health care (CDHC), which is proving to lower costs and encourage responsible behavior among Americans seeking to save more money for health care. Our previous briefing on consumer choice insurance anticipated that 2008 would be a special year for HSAs.

Indeed, reliable reports indicate that HSAs are becoming increasingly popular. HSAs are a fundamental part of the effort to give Americans greater ownership of health care. The taxfree accounts provide a new incentive to save money for health-care expenses, and they restore choice and control of our health services to us. Americans with low-premium, high-deductible policies can open HSAs, which are offered through financial institutions. Employers, employees, and individuals can deposit pretax dollars into their accounts, and all health expenses drawn from HSAs are absolutely tax free.

To read more, see the Pacific Research Institute (PDF).