NU Online News Service, Dec. 2, 2003, 12:22 p.m. EST – The health savings account section of H.R. 1, the new Medicare Prescription Drug, Improvement and Modernization Act of 2003, could lead to big sales of HSAs as tax shelters, according to analysts at the Center on Budget and Policy Priorities, Washington.[@@]
Sellers of HSAs could start with 1 million account participants in 2004 and end up with 3 million participants in 2013, Robert Greenstein and Edwin Park write in a commentary about H.R. 1.
Congress recently sent the bill to President Bush, who strongly supported H.R. 1 and has said that he intends to sign the bill into law.
Under MPDIMA, taxpayers can establish HSAs only if they also buy high-deductible health insurance policies. Participants in traditional, comprehensive employer-sponsored coverage cannot use HSAs.