tci Medicare Compliance & Reimbursement - 2004 Issue 23

HEALTH PLANS: New HSA Guidance Allows For Design Flexibility

Government's enthusiasm for HSAs is good news for health plans. The Bush administration is doing everything it can to get more health plans and employers on the consumer-driven health care bandwagon. The Treasury Department issued guidance May 11 clarifying the ways in which health savings accounts may be used by workers who also have access to other employer-based health accounts, such as flexible spending accounts and health reimbursement accounts. Last year's Medicare Modernization Act created HSAs, but it included language preventing an employee from contributing to an HSA account at the same time that he or she is covered...

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