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January 29, 2006
Health Savings Accounts Triple in 10 Months
At least three million consumers currently receive health coverage through high-deductible health insurance plans offered in conjunction with a health saving account, according to preliminary results of a new study by America's Health Insurance Plans (AHIP).
"Health Savings Accounts are a remarkable success story and they are proving to be especially attractive to many individuals and families who might not otherwise be able to afford coverage," said AHIP president and CEO Karen Ignagni.
According to the study, enrollment in the new insurance policies eligible for Health Savings Accounts has roughly tripled since last March when a similar AHIP survey found that 1,031,000 people were covered by a Health Savings Plan.
Ignagni went on to say "Consumers and employers have quickly embraced HSAs as a valued option in the suite of products offered by health insurance plans."
The study is based on aggregated responses from AHIP member companies, which represent nearly all the health insurance plans offering HSA-eligible health insurance plans. The preliminary findings also show that the market for HSAs is becoming broader, with companies offering HSAs in more markets and to a wider array of large group, small group and individual customers.
Employers and individuals can contribute pre-tax dollars into an HSA for future medical expenses. The account funds belong to the individual and unused contributions can roll over tax-free from year to year.
For 2006, the maximum annual contribution for self-only coverage (whether individual or through an employer) is equal to the consumer's insurance plan deductible or $2,700, whichever is less. For family coverage, the maximum is equal to the insurance plan's family deductible or $5,450, whichever is less.
For more information about Health Savings Accounts and how they work, please visit our HSA Information page.
Posted by Wiley Long at January 29, 2006 10:27 AM
Comments
If you are insured by an HSA but do not "own" the account, can you have duplicate insurance coverage. For example, a child of divorced parents - can they be on both mom and dads plan?
Posted by: Micki Debbrecht at January 30, 2006 05:42 PM
Yes, that child could be on both plans, since they are not the owner of the HSA.
Posted by: Wiley at January 31, 2006 10:45 AM