Health Savings Accounts Grow in Popularity

QuickQuote Term Life Insurance Blog

America’s Health Insurance Plans (AHIP) recently released the results of a census indicating that 4.5 million Americans are now covered by High Deductible Health Insurance Plans (HDHP’s)¬†that include Health Saving Accounts (HSA’s). This represents an annual growth rate of 43% over the previous year.

HDHP’s typically offer lower premiums than those of traditional health insurance plans. They also often come¬†with the added benefit of an HSA account. The HSA account allows members to make tax-deferred deposits up to preset limits. These deposits become tax-free as long as they are used to pay for eligible medical expenses.

Perhaps the most compelling finding from the census was that approximately 25% of all new HSA plan enrollees were previously uninsured. This provides strong evidence that consumer-directed health plans, and the lower premiums that typically accompany them, may indeed be helping to reduce the large number of uninsured Americans.

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