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WALL STREET JOURNAL ON HSA 'MOMENTUM'

September 10, 2004

The BenefitsBlog highlights an article in yesterday's Wall Street Journal that says Health Savings Accounts are catching on. The article says

   Health savings accounts, billed as the
   most significant savings vehicle to 
   hit individual investors since the IRA
   and the 401(k), are starting to take 
   off.

   The new approach to paying for health
   care was created in December's 
   Medicare overhaul. It combines a 
   tax-free account to pay for medical 
   expenses with a high-deductible health
   plan with low premiums.

   Already, tens of thousands of the new 
   accounts have been opened. President 
   Bush in his convention speech last week
   touted the accounts as a way to help 
   small businesses afford health benefits
   for their employees.

As people realize that HSAs work like deductible IRAs, but with no high-income phaseout and a medical expense tax-free withdrawal feature, they will continue to increase in popularity.

For prior coverage of HSAs in the Tax Update:

TREASURY PROVIDES COMPREHENSIVE HEALTH SAVINGS ACCOUNT GUIDANCE

HAMMERING HENRY ON HSAs

THE NEW HEALTH SAVINGS ACCOUNTS: HOW THEY WORK

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