Health Savings Accounts

[Guest Ginny Rigsbee]

Can anyone tell me about the new health savings accounts? Mainly pros and cons I guess.

Thank you

[Guest Rbennett]

Ginny,

Health Savings Accounts (HSAs) help pay unreimbursed medical expenses on a tax-preferred basis.

HSAs may be established by any individual who is covered by a health plan with annual contributions limited to 100% of the deductible up to a maximum of $2,600 for an individual or $5,150 for a family in 2004. Account holders aged 55 and up may make additional contributions of $500 in 2004, increasing by $100 each year until it reaches $1,000 in 2009.

The ability of baby boomers to begin saving now for their health expenses during retirement, will save Medicare money in the future and ensure Medicare's financial vitality into the future.

I am a member of the National Association of Health Underwriters (NAHU). NAHU is an invalluable resource of information.

I just returned from Washington, DC where we had our annual Capitol Conference and had over 600 attendees. We had very impressive speakers and visited with legislators from our states to discuss HSAs, Medicare Reform, Tax credits, etc. NAHU has become very well known on Capitol Hill and is called upon frequently for information on health care issues.

I would be happy to answer additional questions you may have. Please visit our website at

www.nahu.org

or send me an e-mail at

rbennett@sc.rr.com

Robin H. Bennett, RHU