Tax Proposals and Health Savings Accounts (HSAs)
A new Government Accountability Office report indicates that Health Savings Accounts are used disproportionately by affluent households. Its findings also suggest that HSAs are being used extensively as tax shelters.
December 19, 2014
Republican Study Committee Health Plan Would Likely Result in Many More Uninsured and Fewer Consumer Protections
September 23, 2014
July 25, 2013
May 9, 2013
June 5, 2012
- View All By Date
Some proposals to reform the health care system seek to achieve this goal through changes in the tax code, such as expansion of Health Savings Accounts (HSAs) — individual accounts in which individuals who have a high-deductible health policy can save money to pay out-of-pocket health expenses. Contributions to HSAs are tax deductible and may be placed in stocks, bonds, or other investment vehicles, with the earnings accruing on a tax-free basis. Withdrawals from HSAs also are tax exempt as long as they are used for out-of-pocket medical costs.
HSAs suffer from several serious problems. Most notably, they could actually increase the number of uninsured by weakening the system of employer-based coverage through which the vast majority of Americans receive health insurance.