About a Government Health Savings Account

Health Savings Accounts (HSAs) are unique to the United States and were created as a way to help Americans acquire personal medical care without the need for government assistance.

Identification

• HSAs are created by the American government to help people save for future medical expenses. A HSA is controlled by the account holder and is invested in the stock market; there are requirements and guidelines to obtain this type of account.

History

• In 2003, the Medicare bill passed by the Bush Administration created the Health Savings Accounts; it was initially viewed as a positive way for average Americans to gain health care coverage.

Function

• HSAs function as normal savings accounts, but are specifically used for future health care expenses, allowing you to put a set amount into the account periodically to build a nest egg for future needs.

Requirements

• The one major requirement is enrollment in a High Deductible Health Plan (HDHP). To get a Health Savings Account, the HDHP deductible must be at least $1,100 for individuals and $2,200 for families.

Getting an HSA

• An account can be acquired through authorized banks, insurance agents or credit unions; additionally, an employer can also set up an account in an employee's name.