New Online Site Helps Consumers Better Understand HSA's

Heath Savings Accounts are an integral part of the shift toward consumer driven health insurance. If you are in the market for private health insurance, or you if your employer is switching from a traditional indemnity health plan to a High Deductible Health Plan, then you have no doubt heard about HSA's. Basically an HSA is a tax deferred annuity account similar to an IRA, but unlike a typical retirement account, you can withdraw funds to pay for qualified medical expenses without penalty. Funds that are not withdrawn continue to accrue interest just as in any other type of 401K.

However, consumers have had trouble understanding HSA's and have been slow to embrace them. One of the nations largest insurers UnitedHealthcare has launched a Website designed to answer consumers many questions about HSA's. The site, www.HSAcenter.com, offers the health insurance consumer easy to understand info on HSA's and how they work. The site offers a wealth of information, multiple and easy to access formats, including text, video, and flash presentations. Other tools such as an HSA calculator are also available.

According to Americas Health Insurance Plans, there are currently almost 5 million Americans with HSA's. AHIP is an organization that has been instrumental in working with the government and private sector on health insurance reform, and has recently presented a plan that hopes to insure all Americans over the next 10 years. HSA's and High Deductible Health Plans were a big part of that proposal. A spoke person for UnitedHealthcare said, “These numbers will continue to grow as more Americans come to understand the affordability, tax savings and control over health care spending that HSA plans offer." According to Treasury Department estimates the number of American with HSA's is expected to be 20 - 30 million by 2010. Insurance companies and consumer advocate alike hope most of these numbers come from the ranks of those currently without access to affordable health coverage. So far that seems to be happening. UnitedHealthcare says that one third of customers who took out HSA plans last year were previously without health insurance coverage.

Many other large insurance companies are getting into consumer driven insurance products. Information is key to a successful marketplace, the more consumers know about these plans, and how they work, the better it will be for the industry and for healthcare. Other sites with more useful information about HSA's can be found at http://www.ustreas.gov/offices/public-affairs/hsa/about.shtml or http://www.kiplinger.com/features/archives/2004/02/hsa.html