"A health savings account is a good deal, and all Americans should consider it...These accounts will be good for small business owners and employees. This will help more American families get the health care they need at a price they can afford."

-President George W. Bush, December 8, 2003

With last year's passage of the Medicare Bill, Congress established a system whereby any individual may establish a Health Savings Account ("HSA") which allows the HSA holder (and or their employer) to make tax-free contributions which, when used for medical expenses, may be distributed tax-free on behalf of the account holder. We believe this legislation will prove to be one of the most important changes to our healthcare financing system in many decades.

"Every year, the money not spent would stay in the account and gain interest tax-free, just like an IRA. And people will have an incentive to live more healthy lifestyles because they want to see their health savings account grow."

-President George W. Bush, December 8, 2003

An HSA allows the account holder, his/her employer or both, to make tax-free contributions to the account which, if unused for medical expenses, may accrue year to year tax-free. Monies earned from these accounts also accrue year to year tax-free. The monies in these accounts may be used to pay for any eligible medical expenses (like doctor office visits, procedures, Rx, etc.) without any tax consequences. Check with a tax advisor or IRS publication(s) for other allowable distributions.

In order to qualify for an HSA account, the account holder must also have or acquire a High Deductible Health Plan ("HDHP") which will cover medical expenses which may be incurred and may exceed the annual contribution to the HSA account. This requirement does two beneficial things. First, it provides the major medical or hospitalization coverage everyone should have to guard against a major or expensive illness or accident. It also allows the HSA account holder to enjoy a greatly reduced premium. It's simple. The less insurance you buy, the lower the monthly premium will be. If you do not purchase coverage for small, predictable routine medical expenses, your insurance premiums will be greatly reduced.

"And tonight I propose that individuals who buy catastrophic health care coverage, as part of our new health savings accounts, be allowed to deduct 100 percent of the premiums from their taxes."

-President George W. Bush, State of the Union Address, January 20, 2004

For a copy of HSA Road Rules for Individuals Sixth Edition January 2008
Click Here

For a copy of HSA Road Rules for Employers 6th Edition January 2008
Click Here

The Care Card is not insurance. Neither Doctors Direct of the CSRA, Inc. nor its Care Card program sells insurance products or establishes HSAs. However, the Care Card may work to reduce out-of-pocket expenses to meet a high deductible. To learn more about HSAs or to receive a quote please contact your health insurance agent or call us at (706) 733-1776 and we will forward your request to a qualified insurance agent/broker.