NU Online News Service, Dec. 8, 2003, 4:31 p.m. EST – Aetna Inc., Hartford, says it will be adding health savings accounts as an option to its Aetna HealthFund family of defined contribution health plans Jan. 1.[@@]
The new Medicare Prescription Drug, Improvement and Modernization Act of 2003 includes a section that lets members of high-deductible insurance plans deduct contributions to HSAs from taxable income.
Aetna’s defined contribution health plan program combines high-deductible health coverage with personal health accounts that employees can use to pay for routine medical expenses.
Although federal agencies have given companies permission to include various types of personal care accounts in defined contribution health plans, MPDIMA clarifies the rules and builds a variety of account tax breaks into federal law, experts say.
President Bush signed H.R. 1, the bill that created MDIMA, earlier today.