Health Saving Accounts: Beneficial Reform or Tax Break for the Wealthy?

Health savings accounts (HSAs) are touted as a key reform necessary to protect our health care system. The tax advantages of HSAs are significant, as are the potential effects of greater consumer involvement in health care decisions. Health savings accounts are criticized as tax breaks for the wealt...

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Bibliographic Details
Published in:Journal of insurance regulation 2004-12, Vol.23 (2), p.67
Main Author: Eastman, Alan D
Format: Article
Language:English
Subjects:
Advantages
Employers
Health care expenditures
Health care policy
Health insurance
Health savings accounts
Medical savings accounts
Studies
Tax deductions
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Summary:Health savings accounts (HSAs) are touted as a key reform necessary to protect our health care system. The tax advantages of HSAs are significant, as are the potential effects of greater consumer involvement in health care decisions. Health savings accounts are criticized as tax breaks for the wealthy, capable of ruining our employer-based health care financing system. High deductible HSA plans may disproportionately hurt low income and less healthy workers. It is too early to determine which vision of their impact is more likely to match with reality. The present study examines existing HSA products available to individuals and families in western PA, comparing financial outcomes depending upon income, HSA contribution, and medical expenses. HSAs are generally beneficial, but adjustments are needed to protect low-income households.
ISSN:0736-248X