Health Savings Info

Tid-Bits

Senator George Allen told the business leaders that more needs to be done to ensure that American workers have health insurance.

He said he is a "strong advocate" of health savings accounts, which were created in 2003 and allow citizens to pay for current health expenses and save for health medical and retiree health costs on a tax-free basis. So far, 3 million citizens have signed up for the accounts, one-third of whom were previously uninsured, Allen said.

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Former National Association of Manufacturers member and top economic adviser to the President Al Hubbard opened yesterday with a speech on health care. He touted the benefits of health savings accounts (HSA's), noting that the number of enrollees in HSA's has tripled, to almost 3 million today. He emphasized the importance of engaging -- and incentivizing -- the consumer on health care. He urged all manufacturers to provide employees information on the cost and quality of health care they're receiving, so they can make more informed choices.

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According to the Census Bureau, the number of people with health insurance coverage increased from 245.9 million in 2004 to 247.3 million in 2005. 46.6 million people were without health insurance coverage, up from 45.3 million people in 2004.

Between 2004 and 2005, people covered by employment-based health insurance (174.8 million) declined from 59.8 percent to 59.5 percent.

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Portability of HSAs