Health Savings Account (HSA) legislation was signed into law in December of 2003.  This new type of health savings plan has been defined as an "IRA for Medical Expenses." The contributions from either employee or employer are tax deductible and qualified medical expenses are paid for with tax free dollars, including returns made on your HSA account.  When combined with a high deductible Health Insurance Policy, this new combination health solution can potentially provide you and your company with reduced health care costs, improved coverage and the additional flexibility of allowing you to select your own physician (typically from an extensive PPO directory) without the extensive restrictions imposed by HMO-type plans.

 

HSA's are one of the most exciting new pieces of financial and health care legislation to come out in years.