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What the planners hoped when they introduced HSAs is now apparently happening.
Continuing its drive to promote and expand Health Savings Accounts, the administration is proposing direct help for low income families who want to purchase and use HSAs.
The Treasury Department is doing everything it can to help grow HSAs. Its latest public support came in an announcement by Treasury Secretary Snow that there will be little or no lightening of the rules concerning Flexible Spending Accounts.
Pundits predict that 2005 will be year of increased job changing as pent-up fears over the economy and election uncertainties abate. Many smaller firms will be hit with defections as employees seek better situations in terms of salaries, benefits and work environment.
A newly issued set of rules will make it easier for some workers to change jobs by requiring healthcare plans and insurers to issue fewer “pre-existing condition” riders.
Dr. Joseph Q. Jarvis, president of Utah Health Alliance in Salt Lake City, thinks that because high healthcare costs are due to excessive administrative costs, HSAs will cause a worsening situation.
Confirming trends first reported by HSAfinder in Spring 2004, HSAs are expected to be a big purchase item in 2005 for small and medium sized businesses.
Some of the nation’s leading newspapers are reporting on the soaring costs of small business healthcare. At the same time, they are also beginning to recognize the growing importance of HSAs in stemming the rising price levels.
More and more companies are providing personal retirement accounts and health savings accounts with greater employee control and responsibility. At the same time, they are being allowed to provide additional education tools to help employees better manage these accounts.

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