Wealthy Americans are the primary users of health savings accounts, according
to a report from the Government Accountability Office.
Tax filers with HSA activity have higher incomes on average than others,
earning about $139,000, compared with $57,000 for other filers.
Enrollment growth in the plans jumped between 2004 and 2007, with
participation growing to 4.5 million people, from 438,000.
Additionally, the value of the HSA contributions reported to the IRS in 2005
was $754 million, nearly double the $366 million withdrawn from the accounts.
The GAO’s findings raised criticism from the House Oversight and Government
Reform Committee Chairman Henry A. Waxman, D-California, and Ways and Means
Health Subcommittee Chairman Pete Stark, D-California.
“HSAs clearly are attractive to higher-income people who are looking for tax
shelters,” Waxman said in a statement issued by the two congressmen. “But they
aren’t the answer for providing adequate health insurance coverage for the
average American. This report provides further evidence that we need to
re-examine whether this is the right way to use the government’s resources to
address our health care needs.”
The accounts, which permit holders to accumulate tax-free savings to pay for
medical expenses, are already in question: The House passed a bill in April that
would require HSA trustees to substantiate the withdrawals and distributions
from these accounts starting December 31, 2010.
HSA advocates fear this would raise the cost of the plans and turn customers
off to the accounts.
Filed by Darla Mercado of Investment News, a sister publication of Workforce
Management. To comment, e-mail editors@workforce.com.
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