Healthy and Wealthy and Dead: Health Savings Accounts

Abstract:     
Health Savings Accounts (HSAs) were introduced by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. This article describes the statutory rules governing the design and operation of HSAs and the federal income tax treatment of health care expenses. The article discusses the debate between proponents and opponents of HSAs and concludes that, while we do not yet have much experience with HSAs, the more extravagant claims made by their supporters should be viewed with caution.

Number of Pages in PDF File: 31

Keywords: health savings account, Medicare, prescription drug

Accepted Paper Series