The Benefits of Health Savings Accounts

The chart below, recently published by Americans for Tax Reform, shows that since January 2004, when Health Savings Accounts were made widely available, the annual rate of increases in heath care costs has moved from 4% above base inflation to 1% below the inflation rate for the entire economy.

Today there are more than three million Health Savings Accounts, and they are affecting costs in other traditional health-insurance programs.

It is estimated that there will be 10 million HSAs by 2010, only four years away.

ATR President Grover Norquist noted that if Health Savings Accounts expand and this progress continues or even grows, all the charts that show Medicare and Medicaid exploding in the out years become less scary.

Norquist described the fear-factor downgrade as “down from ‘gnaw-your-leg-off’ scary to simply a ‘Psycho-like’ scary.”