The U.S. Congress recently passed legislation which makes paying for medical expenses much more affordable for consumers. As of January 1, 2004, the new law provides broad access to Health Savings Accounts, which allow consumers to pay for qualified medical expenses with pre-tax dollars (income-tax free!) and save for retirement on a tax-deferred basis.
A Health Savings Account (HSA) is a tax-favored saving account that is used in conjunction with a high-deductible HSA-eligible health insurance plan to make healthcare more affordable and to save for retirement.
HSA’s could fix many of the health care challenges that many Americans face. It will save the average premium payer thousands each year; provide 100% coverage for prescription drugs, dental, eye care and much more not usually covered by health insurance. Health Savings Accounts can drastically curve abuses in health care by having the consumer rewarded for good health and frugality.
Click here for some informative questions and answers about HSA's.
