Health Savings Accounts: Worth The Savings?

Health Savings Accounts have become very popular very fast. I have seen the increases every year since 2003 (The year HSAs were passed into law.)

FACT SHEET:

DRAMATIC GROWTH OF HEALTH SAVINGS ACCOUNTS (HSAS)

THEN (2004)…

• 438,000 -- Individuals were covered in November 2004 by HSA-type insurance plans -- according to the America Health Insurance Providers (AHIP).

• 113,000 (roughly 240,000 individuals) -- IRS data on individual tax returns reporting HSA deductions in tax year 20041.

NOW…

• 3.2 million -- Seven fold increase to individuals covered by HSA type insurance plans (November 2004 to December 2005) -- according to AHIP.

o 31% -- Previously uninsured individuals buying health insurance on their own.

o 33% -- Small businesses not previously offering coverage.

o Nearly 50% -- Age 40 or over.

• $1 billion -- Dollars invested in HSAs by Americans, according to data gathered by Inside Consumer-Directed Care (ICDC) newsletter Feb. 24 issue -- based on financial data provided by more than 60 financial firms including JPMorgan Chase, Wells Fargo and The Principal Financial Group.

• 42% -- Number of Individuals or families with incomes below $50,000 buying HSA type insurance on their own, according to "Health Savings Accounts: The First Six Months of 2005" report by eHealthInsurance.

THE FUTURE…

• 14 million by 2010 -- Treasury Department projection of HSA policies (covering 25 to 30 million people) -- based on current law.

• 21 million by 2010 -- Treasury Department HSA policies estimates rise by 50 percent (covering 40 to 45 million people) -- based on the President’s health care initiative.

1 Individual tax returns do not reflect employer financed HSA contributions.

The consumer interest keeps growing every year.

2006 to 2007

4.5 Million Americans are now covered by HSAs.

Another great article on how to use them.
http://www.healthsavingsaccountsinc.com/articles/howtouseyourhsa.htm