HSAs - Tax-Advantaged Payment of Medical Expenses

Congress authorized the creation of health savings accounts (HSAs) as part of the 2003 Medicare Modernization Act. HSAs can be  set up by consumers or by employers and give individuals the opportunity to use tax-free funds to pay medical bills and to save for future health care expenses. HSAs are established in combination with insurance coverage under a qualifying high deductible health plan (HDHP).

NAIFA Health & Employee Benefits members serving the small business health insurance market have found HSAs used in conjunction with HDHPs offer an affordable health care solution.

NAIFA Health & Employee Benefits opposes Congressional policy that would curtail the future use of HSAs and/or HDHPs, and, as a result, add to the ranks of uninsured individuals and families.