In 2003 Congress created a law paving the way for Health Savings Accounts (HSA's). By way of definition, an HSA is a tax exempt account established for the purpose of paying medical expenses in conjunction with a high-deductible health plan. Unlike cafeteria plans, flexible spending accounts, or Health reimbursement arrangements, HSA's are portable and are not a "use it or lose it" type of plan. Monies contributed to an HSA accumulate in the employee's account year to year. If those dollars are not used for medical care, they can become a supplement to an employee's retirement account or can pay for qualified medical expenses in future years. HSA's can be established by individuals or an employer for their employees.

In most cases, insurance policies over insure the wrong thing - small costs associated with health care for generally healthy people. HSA's ensure that you are covered for catastrophic costs if they come up, but generally save money by lowering health insurance premiums paid each month. All this and the possibility of additional monies at retirement!

We feel that HSA's are a step in the right direction - putting health care decisions, as well as the ability to control their costs, back in the hands of the consumers. After years of working with similar concepts we can help you evaluate this new way of looking at paying for healthcare.

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