Tuesday, May 30, 2006
After moving slowly into tax-free 401(k) retirement plans and let-up into college savings accounts, most Americans are once again pleasing a cautious approach - this time on the way to health savings accounts.
While they wait, however, three million others have by now taken the plunge and are now either 1) insured for the primary time or 2) saving 42 percent or more on their old plans, according to commerce analysts.
And more are signing up everyday.
In Colorado, a recent Mountain States Employer Council review found nearly one in 12 small businesses is using some form of health savings accounts and one in five is actively interested about them. A year ago only a small part of businesses even knew about them, the employers' group said.
Nationwide, enrollment in health savings accounts tripled in the past year to nearly 3.3 million people covered as of January; according to industry trade group America's Health Insurance Plans. "This is a very significant increase," said Karen Ignagni, the trade group's leader executive.
The term "health savings accounts" - commonly called HSAs - is used as a sunshade reference to a new type of health insurance. People take out a health insurance policy that features low down premiums ($300 a month for a family) and high deductibles ($5,500 is common) while also investing in a tax-free health savings account.
Money from the tax-free health savings explanation goes to pay for more routine medical care, such as doctor's visits or an outpatient surgery. The insurance policy offers defense in the event medical bills start to climb.
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