NU Online News Service, Feb. 17, 2004, 4:19 p.m. EST – Many insurers will start small when they enter the health savings account market.[@@]
Benefits experts at Eastbridge Consulting Group Inc., Avon, Conn., reach that conclusion in a new report on the infant HSA market.
President Bush brought HSAs to life Dec. 8, 2003, when he signed the Medicare Prescription Drug, Improvement and Modernization Act of 2003.
MPDIMA makes HSAs available to employers and individual taxpayers that buy high-deductible health coverage. Eligible taxpayers can deduct HSA contributions from taxable income and spend HSA cash on qualified expenses without paying income taxes on the distributions.