- Aug 31, 2006
- Reaction score
- The beautiful Yadkin Valley
http://en.wikipedia.org/wiki/Medical_Savings_AccountA 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 income tax, but can only be used to pay for qualified medical expenses. HSAs were established as part of the Medicare Prescription Drug, Improvement, and Modernization Act which was signed into law by President Bush on December 8, 2003. These accounts are a component of Consumer Driven Health Plans.
This is an improvement over the Medical Savings Account system, as the excess funds are allowed to roll over from previous fiscal years and remain the property of the employee. In fact, the excess funds can be used similar to an IRA account.
Looks like the Bush Administration solved the Health Care Crisis with a system that lowers costs for consumers, helps the insurance industry to be more competitive, let's consumers control their funds and make their own choices, allows consumers to pay for medical expense tax free, and keeps the guv'mint out of the process. No wonder the MSM hasn't said a word about this.