HSAs Offer Insurance Choice

Medical expenses can potentially force families into bankruptcy. To stave off that possibility, President Bush signed Public Law 108-173, the "Medicare Prescription Drug, Improvement and Modernization Act of 2003," creating Health Savings Accounts, which are designed to help individuals save for qualified medical and retiree health expenses on a tax-advantaged basis.

Sen. Orrin Hatch recently introduced legislation that would create a more comprehensive system of HSAs, providing Americans with greater choice and helping limit out-of-control medical costs. Hatch's bill will enhance the voluntary program that provides an option Americans haven't had in the past. Consumers invest in an HSA the same way they would an IRA, then withdraw from it tax-free to pay for qualified medical expenses like deductibles, dental or vision care.

[Read Article]