Health Savings Accounts (HSAs) have been called a "Health Care IRA." With an HSA, an eligible individual has the opportunity to set aside money on a pre-tax basis to pay for health care expenses. A key feature of a HSA is that funds can be 'rolled over' from one year to the next without forfeiture. Many benefit experts foresee significant growth in Health Savings Accounts, especially when linked with a 'consumer driven' strategy to educate health care buyers.
In December, 2006, President Bush signed a tax bill which should broaden the appeal of Health Savings Accounts (HSAs), by "delinking" the HSA contribution from the underlying health plan deductible. For 2012, the indexed amounts are $3,100.00 for single coverage and $6,250.00 for family coverage.
The Department of Labor released guidance on HSAs and related issues. The Field Assistance Bulletin is divided into eleven Question and Answer segments, and can be found at www.dol.gov.
Allow the benefit experts at C.M. Smith the opportunity to review the important features of Health Savings Accounts with you, and see how this interesting tax-favored vehicle can help you and your eligible employees obtain more value from your health insurance program.
To learn more about the Health Savings Account features, contact a benefits broker at C.M. Smith.