Health savings accounts (WSJ)

"Congress created health savings accounts to help people cover medical costs but state laws are getting in the way," reports the Wall Street Journal of June 20, 2005, p. R4. Congress created HSAs in 2003 to allow individuals to save money for future medical expenses with contributions from taxable income. HSAs must also be linked with a high-deductible ($1000) insurance plan. Presently insurance laws in many states are incompatible with the federal HSA law, some states don't allow state tax exemptions, and finding a financial institution to handle an HSA can be difficult. Nevertheless, HSAs are increasing, with over a million people covered as of March 2005. (WSJ is available in the Library)