Health Savings Account Blog

"HSA insurance plans have been successful in reaching the uninsured and keeping down insurance premium increases," says Bragdon. "These plans are revolutionizing health insurance by providing individuals and small businesses with low-cost health benefit while encouraging savings for future medical expenses. This report shows how over time an individual could accumulate thousands of dollars in their HSA while having a comprehensive health benefit."

A Health Savings Account is a savings account that is combined with a lower-premium, higher-deductible health insurance plan. The savings account allows for an individual or family to pay for out-of-pocket health care costs. Contributions are income tax deductible and withdrawals are tax-free, if used for health care - including medical, dental, vision, and many other expenses. You can see a list of HSA qualified medical expenses.

"This year, the Maine Legislature voted to make HSA contributions tax deductible for state income tax purposes," commented Mr. Bragdon. "I commend state policymakers for finally providing Mainers with the same health care benefit enjoyed by 44 other states."

The key findings in the report include:

- Premiums for HSA-eligible plans are typically 28-35 percent lower than traditional health insurance premiums.
- HSA plans provide individuals the same discounted prices for health care services given to insurance carriers and large companies.
- HSAs put real money in the pocket of employees.
- 30 percent of those buying HSA-plans were uninsured.
- HSA enrollment spans all demographics - young and old with low to high incomes.
- HSA premiums are increasing at the rate of inflation, as opposed to their traditional counterparts that are increasing two to three times that rate.
- HSAs promote fiscally conscious health care consumers.
- In Maine, lower income families with HSAs contribute the same or more per household member as higher income families.
- Effective January 1, 2006, Mainers can deduct HSA contributions on their Maine income taxes.

The report is available at www.mainepolicy.org. In early summer 2006, MHPC will be releasing a series of case studies on Maine companies and individuals who have HSA plans.

The Maine Heritage Policy Center is a 501 (c) 3 nonprofit, nonpartisan research and educational organization based in Portland, Maine. The Center formulates and promotes free market, conservative public policies in the areas of economic growth, fiscal matters, health care, and education - providing solutions that will benefit all the people of Maine. Contributions to MHPC are tax deductible to the extent allowed by law.

Learn more about HSAs at http://www.health--savings--accounts.com