HSA
Health Savings Account

HSA is the future of health insurance and may in fact become the dominant form of health insurance in the next 5 to 10 years.

This was a statement made by Ray Ranthum, special assistant to President Bush on Economic Policy, when he met with Connecticut business leaders and statewide Chamber of Commerce executives during a froum held at the Crowne Plaza.

HSAs, which stand for Health Savings Accounts, are tax-exempt savings accounts created for the purpose of paying qualified health care and medical expenses of the account beneficiary. Contributions are made to an health savings account to cover the beneficiary under a high deductible health insurance plan.

Ranthum said that a person tends to spend less, when that person has a vested interest on how he or she spends money for health insurance.

Ranthum said that the Bush administration is pushing for health savings accounts as part of the president's overall health-care agenda which includes association health plans, health insurance across state lines, to provide tax credits to uninsured individuals who can not afford health insurance on their own.

Ramthun said people want to shop health insurance, but until recently haven't had good information.

"It's like going though a department store and buying items without price tags," he said. "HSAs are here to stay. We want them to play a stronger role. We want to get the information out. In 2006, employers will have the information they’re looking for."

The forum was the second of it's kind. The first was held last October. Doug Badger, then Washington's Senior Health Policy Coordinator, spoke about the Bush Administration's support for Health Savings Accounts as a way for small businesses to control the rising cost of health insurance. John Leone, chairman of the Chambers Benefit Centers Leadership Cabinet, said "The overwhelmingly positive response to the first forum led Chamber of Commerce executives to hold a second."

Condensed from Middletownpress.com

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