[The Council for Affordable Health Insurance (CAHI) is a research and advocacy association of insurance carriers active in the individual, small group, HSA and senior markets. CAHI's membership includes insurance companies, small businesses, providers, nonprofit associations, actuaries, insurance brokers and individuals. Since 1992, CAHI has been an active advocate for market-oriented solutions to the problems in America's health care system. (CAHI About]
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CAHI:New Plans Are Already Changing Health Care: "
December 8, 2004
HSAs Signed into Law One Year Ago
New Plans Are Already Changing Health Care

ALEXANDRIA, – Today marks the first anniversary of the passage of the Medicare Modernization Act, which created one of the most innovative and consumer-friendly health insurance products available: Health Savings Accounts (HSAs).

“HSAs have revolutionized America’s health care marketplace since the first one was sold January 1, 2004,” stated Council for Affordable Health Insurance (CAHI) Director Dr. Merrill Matthews. “More people are gaining coverage and taking control of their health care options than ever before.”

HSAs allow employers or employees to contribute to a tax-deferred personal savings account, which are used to pay smaller and routine medical expenses. HSAs must be linked to a high-deductible health insurance policy with a minimum $1,000 deducible for an individual or $2,000 for a family.

Critics of HSAs said that only the rich seeking a tax shelter would want an HSA; working Americans would shun them. However, according to a study from eHealthInsurance, 41% of the individuals purchasing HSA plans, and 53% of families, have annual incomes of $50,000 or less. Also, approximately 30% of HSA-eligible health insurance plans sold through eHealthInsurance were to people who were previously uninsured.

“The facts are coming in, "