Health Savings Account enrollment continues to climb

America’s Health Insurance Plans, the trade association for the insurance industry, reported this week that enrollment in health savings account-eligible insurance plans has reached nearly 15.5 million, growing by almost 15 percent since last year  (Source: “AHIP touts strong enrollment in plans with health savings accounts,” The Hill Healthwatch blog, June 26, 2013).

Authorized by Congress about 10 years ago, HSAs allow consumers to put away money for medical expenses without paying income tax on those savings. According to the AHIP study, enrollment in HSA plans has more than tripled over the last six years, from 4.5 million enrollees in January 2007 to 15.5 million in January 2013. 

Proponents of HSAs argue that the accounts push patients to more carefully consider their healthcare expenses. However, critics, argue that the government loses necessary revenue on HSAs because of their tax advantage.