Quick Facts: Health
Savings Accounts
Who's Taking Advantage of Health What Are HSAs?
Savings Accounts (HSAs)?
Signed into law by President George W. Bush
One of the leading individual and small-group as part of the Medicare Prescription &
health insurers, Assurant Health, states that, Modernization Act in December 2003, HSAs:
since 2004, the first year HSAs were Provide a vehicle for tax-advantaged health
available, 37% of Assurant Health’s new savings
individual medical sales have been HSAs. To Not only increase health insurance options,
date, Assurant Health has received but also help consumers control their own
Individual Medical HSA applications to health care costs
cover over 450,000 people. Make health insurance more affordable by
allowing consumers to save money in a tax-
free account to pay for health care costs
Who’s Buying HSAs? Allow individuals with self-only policies to
Assurant Health’s most recent data show that: make a pre-tax annual contribution of $2,850
68% of HSA purchasers are families with and families to make an annual contribution
children of up to $5,650 into HSA accounts
64% of HSA purchasers are over age 40
26% of HSA purchasers are from
households of four or more people Press Contacts
46% of all HSA purchasers have high school Peter Duckler
or technical school training as their highest 312-423-4930
level of education pduckler@hlbcomm.com
43% of HSA applicants did not indicate
having prior health insurance coverage on
their application Corporate Headquarters
30% of HSA purchasers have family 501 West Michigan
incomes of less than $50,000 P.O. Box 3050
22% of HSA purchasers have family Milwaukee, WI 53201-3050
incomes of less than $40,000 1-800-800-1212
20% of HSA purchasers have a net worth of
less than $25,000 On the Web
assuranthealth.com
temporaryinsurance.com
studentselect.com
How Are HSAs Benefiting Consumers? What Are The Tax Advantages of HSAs?
HSAs are combined with a qualifying high Contributions by an individual, employer or
deductible health insurance plan to provide employee are all tax-free
major medical protection and significant Contributions qualify for federal tax
savings on premiums deductibility
Funds contributed to an HSA belong to Employers can save on their FICA taxes
individuals and are completely portable; Any interest earned on the funds in an HSA
they can be carried from job to job and into are tax-free
retirement Funds used for qualified medical expenses
HSAs can be used during retirement to pay are tax-free
for retiree health care, Medicare expenses
and prescription drugs
What Can HSA Funds Be Used for on a
HSAs are available to all individuals with a
qualified high deductible insurance plan,
Tax-Free and Penalty-Free Basis?
and offer consumers more flexibility, choice Qualified medical expenses as defined
and tax advantages under Section 213 of the IRS Code
COBRA insurance
Health insurance premiums for individuals
receiving unemployment compensation
Qualified long-term care insurance and
expenses
Medicare and retiree health insurance
premiums, but not Medicare supplement
premiums
Assurant Health products are issued and underwritten by Time Insurance Co., John Alden Life Insurance Co., and Union Security Insurance Co.