Friday, June 30, 2006
HSAs paying off
[Thomas Kostigen, "Well-paying idea: How health-savings accounts can become a good investment," MarketWatch, 27 June 2006.]
MarketWatch reports that Health Savings Accounts are growing in popularity, and the financial industry is taking note:
More and more people are finding health-savings accounts are good for them. Enrollment in HSAs has skyrocketed since they were authorized two years ago. By 2010, the Treasury Department estimates as many as 45 million Americans will be covered by the plans.
"Instead of handing over thousands of dollars each year to a big insurance agency, why not keep most of those dollars in a savings account and use them on the services you actually need? There is no person better suited to determining the value of a medical procedure than the patient paying for the benefit," said David Marotta of Marotta Asset Management in Charlottesville, Va.
"As an HSA owner you'll likely do better than break even each year," Marotta said. "With the savings on your insurance premiums, you should be able to accumulate a sizeable nest egg. And, unlike your traditional health care plan, your HSA funds are not subject to a 'use it or lose it' policy. Anything you don't spend one year carries over to the next year. After all, it's your money. While you're on a roll, why not check out the invest options offered by your bank?"
Indeed, the investment options for HSAs are something the financial industry is picking up on -- big time. On the front page of its Web site, the Investment Company Institute makes available an information guide for HSAs. Why? Contributions to HSAs may be invested in fixed accounts, mutual funds, stocks or bonds.
If the financial industry can tap into the funnel of money that has been the terrain of insurance companies, it can breed healthy competition -- just like HSAs themselves, which may be pushing health-care costs down.
[Devon Herrick, "Health Savings Accounts: The Future of Health Care for Kansans," The Flint Hills Center, 14 February 2005.
William Short, "HSAs treat ills of health care payment system," The Kansas City Business Journal, 25 March 2005.]
MarketWatch reports that Health Savings Accounts are growing in popularity, and the financial industry is taking note:
More and more people are finding health-savings accounts are good for them. Enrollment in HSAs has skyrocketed since they were authorized two years ago. By 2010, the Treasury Department estimates as many as 45 million Americans will be covered by the plans.
"Instead of handing over thousands of dollars each year to a big insurance agency, why not keep most of those dollars in a savings account and use them on the services you actually need? There is no person better suited to determining the value of a medical procedure than the patient paying for the benefit," said David Marotta of Marotta Asset Management in Charlottesville, Va.
"As an HSA owner you'll likely do better than break even each year," Marotta said. "With the savings on your insurance premiums, you should be able to accumulate a sizeable nest egg. And, unlike your traditional health care plan, your HSA funds are not subject to a 'use it or lose it' policy. Anything you don't spend one year carries over to the next year. After all, it's your money. While you're on a roll, why not check out the invest options offered by your bank?"
Indeed, the investment options for HSAs are something the financial industry is picking up on -- big time. On the front page of its Web site, the Investment Company Institute makes available an information guide for HSAs. Why? Contributions to HSAs may be invested in fixed accounts, mutual funds, stocks or bonds.
If the financial industry can tap into the funnel of money that has been the terrain of insurance companies, it can breed healthy competition -- just like HSAs themselves, which may be pushing health-care costs down.
[Devon Herrick, "Health Savings Accounts: The Future of Health Care for Kansans," The Flint Hills Center, 14 February 2005.
William Short, "HSAs treat ills of health care payment system," The Kansas City Business Journal, 25 March 2005.]
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