News of the Day ... In Perspective03/23/2006
Health Savings Accounts (HSAs) have dramatic growth spurt
There has been a seven-fold increase in individuals covered by HSA-type insurance between November 2004 and December 2005, according to data provided by the American Health Insurance Providers (AHIP) for a U.S. Treasury Department fact sheet.
The number of individuals covered by HSAs increased from 438,000 in 2004 to 3.2 million in 2005. Of such policyholders, 31% are previously uninsured individuals buying policies on their own, 33% are small businesses not previously offering coverage, nearly 50% are age 40 or older, and 42% have family incomes less than $50,000.
Investments in HSAs now total about $1 billion, according to data provided by more than 60 financial firms.
Based on current law, the Treasury Department projects 14 million accounts by 2010. The estimates rise by 50% if President Bush’s health care initiative is enacted.