Blogging Employee Benefits

February 1, 2006

HSAs Pitched in State of the Union

Filed under: Healthcare — Fuguerre @ 1:15 pm

Health Savings Accounts took center stage in the healthcare segment of President Bush’s State of the Union Address. Although the speech itself only hit the highlights, a White House press release gave slightly greater detail. [PRNewswire, 1/31/06]

  • Premiums for HSA-compatible insurance policies purchased by individuals outside of work (e.g., unemployed, self-employed, or employed by companies that don’t provide health insurance) would be deductible.
  • An income tax credit would offset payroll taxes paid on HSA policy premiums and out-of-pocket expenses.
  • Annual contributions to HSAs could be made in amounts sufficient to cover out-of-pocket costs, versus only the deductible.
  • HSAs would be portable, permitting employers to contribute to an employee’s HSA regardless of where the policy was originally purchased.
  • Health insurance purchases across state lines would be permitted.
  • Small businesses would be permitted to form Association Health Plans.
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2 Comments »

  1. […] Hot on the heels of the President’s focus on Health Savings Accounts in Tuesday’s State of the Union Address, the General Accountability Office has published a report on early experience with HSAs under the civil service system, Federal Employees Health Benefits: First-Year Experience with High-Deductible Health Plans and Health Savings Accounts. [GAO-06-271] GAO was asked to evaluate the 14 “consumer-directed health plans” – HDHPs coupled with HSAs – first offered under the FEHBP in January 2005. Concerns had been expressed that such arrangements would attract younger, healthier, or wealthier employees, thereby driving up costs under traditional plans covering older, less healthy employees. Among GAO’s findings – […]

    Pingback by BeneBlog » Blog Archive » GAO Report on Federal Employee HSAs — February 2, 2006 @ 2:05 pm

  2. […] The White House has released Reforming Health Care for the 21st Century, describing the Administration’s national health care policy. As previously presented in the President’s State of the Union message and budget proposal, health savings accounts (HSAs) are a central element of the Administration’s plan. […]

    Pingback by BeneBlog » Blog Archive » White House Plan for Health Care Reform — February 15, 2006 @ 5:37 pm


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