After 20 successful years, HSAs in need of modernization
This article originally appeared in Fox News on October 17, 2023.
Twenty years ago this December, President George W. Bush signed the bipartisan Medicare Prescription Drug, Improvement and Modernization Act of 2003. In addition to creating the Medicare Part D prescription drug benefit, the bill created the Health Savings Account (HSA).
Health Savings Accounts are sometimes criticized as being a tool for the wealthy, but in fact, 78% of the over 31 million Americans with an HSA have a household income of less than $100,000. That’s because the HSA is the most powerful retirement savings vehicle for the middle class ever created – even better than a 401K.
Not only can the funds in the account be invested in stocks, bonds and funds, but they can also be withdrawn without penalty so long as they are spent on a qualified medical expense. This makes HSAs unique in that both the contributions and disbursements are tax free.
Read full op-ed in Fox News.