Health savings accounts (formerly medical savings accounts or MSA's) seem to be very much "en vogue". What is the real story on them? Are they a reasonable option for insuring my family and my two employees given that none of us have any serious medical illnesses (my wife and I may plan another pregnancy, however.)

Zip Code: mille125@mc.duke.edu

Health Savings Accounts (HSA's) have been available since January 1, 2004. You are basically purchasing a high deductible health insurance policy with the ability to put 100% of your deductible into an account to pay for medical expenses, if any.

The real "hook" is that if you are healthly and only worried about catastrophic medical care you can reduce your premiums and "invest" the difference in a HSA. When you need to pay for care, you are doing it with tax-deductible dollars.

Every situation is different - the premium amounts and make up of your employee group will usually determine if it makes sense.

For additional information, you can go to www.americanhealthvalue.com. This site should answer most of the questions that you might have.

Larry

Zip Code: lkeller@physicianfinancialservices.com