The New Health Savings Account ( HSA ) Facts

A Health Savings Account may be perfect for the Self Employed

(PRWEB) April 13, 2004 -- There's a new way to cover your health costs which also offers tremendous tax advantages: The Health Savings Account, or "HSA". It was included in the massive Medicare legislation signed by President Bush in early December.

An HSA offers significant advantages over the so-called "Archer Medical Savings Account," created to help small businesses a few years ago. But HSAs also have applications for larger companies -- and their employees.

By far, the most common misconception about the new Health Savings Account Plans is that people can just use their existing health insurance policy because it happens to have a high deductible." In most cases, this is incorrect-the law requires a specially defined type of insurance policy, known as the HDHP (high deductible health plan). Although it sounds like" an ordinary policy with a high" deductible, that is not the case. The required HDHP policy has special features not found in most policies issued prior to the advent of the HSA (except for the MSA-qualified policies).

Read the entire article and research more information on the Health Savings Account at our web site.