The Bush administration introduced Health Savings Accounts into the health insurance industry as a way to slow the escalating costs of healthcare. Health Savings Accounts have been adopted by more than six million people across the US and the number continues to grow. Although the monthly premiums are low, the barrier to entry is rather high considering the upfront costs of the program. Statistics show the average income of HSA enrollee’s is around $139,000; whereas the average health insurance enrollee is only $57,000. The huge difference between the two figures is mainly because of the tax advantages you receive when enrolling in an HSA plan. As a family, you can deposit $5,800 or as an individual, you can deposit $2,900 on a tax free basis. You can use this savings account to pay for future medical expenses or you can use the savings as a retirement savings account.

            The pros created by Health Savings Accounts can greatly outweigh the cons if you can afford an HSA account. Those who greatly benefit from are in generally good health and earn enough cash to deposit a portion into the savings account. HSA’s are very affordable, but it is difficult for poor or middleclass individuals to experience the full benefits. Those who have a difficulty benefiting from HSA accounts are those with a low income and high medical expenses. The Health Savings Accounts were created to offer people a chance to save when their medical care is minimal. In some large companies, they have noticed an increase in employees opting for an HSA plan. One company even reported a savings of $8 million dollars in monthly premiums since they began the Health Savings Account. The company has a total of 1,200 employees and 30% have already joined the HSA plans. Health Savings Accounts may offer a lower monthly premium but you should be aware of the other choices and options available when deciding on a new Health Savings Account.