Health Insurance Daily

Unexpected Benefits

More people will start companies, thanks to health savings accounts.

One of the White House's key health care goals for 2006 is to make health savings accounts more attractive. President Bush has asked Congress to raise the limit on how much money can be contributed to an HSA per year. He would also like to create a tax deduction for all out-of-pocket expenses paid via an HSA that is set up individually rather than through an employer. Furthermore, the Bush plan would let taxpayers write off insurance premiums for high-deductible plans that they obtain outside of a traditional employer-sponsored plan.

I think HSAs are a great innovation, and not simply because they provide employers with a way of buying cheaper coverage for their workers at a time when health care costs continue to rise. No, I like HSAs because I think they provide an aspiring entrepreneur with a health insurance cushion so that he or she feels more comfortable leaving a job that provides coverage in order to start a company.

To read this article in its entirety click on Inc. Magazine.

posted by Mike @ 8:20 AM