The Bush Administration and others have touted health savings accounts (HSAs) as the answer to the growing problems of health insurance in the U. S. However, the Bell Policy Center in Denver, Colorado has determined that such accounts may benefit some but not the ones who need help the most.The HSAs work by allowing individuals to add tax-deductible contributions to an account. The money – sometimes combined with employer contributions – can then be used to pay for higher deductible policies which more affordable premiums and/or more coverage. So far most adopters of HSAs have been high-income individuals who already have health insurance. Lower income families and the uninsured are not attracted to the high deductibles and co-payments associated with the plans, plus many don’t have the extra income available to set aside in a health savings account.
Plus, the accounts have failed in bringing health insurance costs down as some predicted they would.
