ADA On The Pulse Health Savings Account FYI Government Accountability Office May 2 2008

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>> Thanks In Advance, Weaver MS RD LD www.mdrdtherapy.com

>> Senior Account Executive America's Business Benefit Association

>> Affordable Health Insurance www.ABBAplans.com

>> Insurance Producers of America Agency www.ipa-america.com/products.htm

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>> 10%Premium Reduction on Health Savings Account Set Up

>> www.treas.gov/offices/public-affairs/hsa/

>> 2300 Lakeview Parkway, 7th Floor Alpharetta, GA 30004

>>

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>> Health Saving Accounts more beneficial to upper and middle class

>>

>> A new study by the Government Accountability Office shows that people

>> with

>> tax-free health savings accounts contribute twice as much as they

>> withdraw.

>> This finding has caused some in Congress to question whether the accounts

>> function more as a tax shelter for the wealthy than an alternate

>> insurance

>> option for individuals seeking lower premiums.

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>> The report found that HSA contributions totaled $754 million in 2005,

>> while

>> withdrawals were only $366 million. Of tax filers reporting HSA

>> contributions in 2005, 41 percent made no withdrawals that year to pay

>> for

>> medical expenses. Under the law, funds deposited in HSA's can be held

>> indefinitely, withdrawing from them for medical expenses before the age

>> of

>> 65 and without restrictions after that.

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>> HSA's were established as an incentive for people to better manage their

>> health care because they use their money to meet high deductibles, which

>> can

>> come from the tax-free accounts. HSA's are a critical element of the

>> health

>> care plan released this week by presidential candidate Sen. McCain

>> (R-AZ). According to the McCain campaign, " The whole idea is people can

>> actually save money for health expenses when they need them. " The

>> campaign

>> also cited 2007 data from America's Health Insurance Plans noting that

>> growth in HSA-eligible plans is concentrated among small businesses:

>> one-third of small businesses who now offer such plans previously did not

>> offer any insurance to their workers.

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>> Democrats who generally oppose HSA's argue that they do not help

>> low-income

>> people obtain insurance and may encourage employers to cut costs by

>> offering

>> high-deductible, low-income plans instead of more robust coverage.

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