Health Insurance Deductible-Coverage on Medical Usage Spending

With the passage of the Medicare Reform Act in late 2003 and its provisions for Health Savings Accounts (HSAs), attention again turned to the effects of higher deductibles on healthcare spending. Individuals and employers are able to establish tax-sheltered spending accounts that allow unused balances to be rolled over from one year to the next if they have an eligible health insurance plan. Among other requirements, an eligible health insurance plan must include a deductible of at least $1,000 per individual. This amount is to be adjusted annually for inflation under the terms of the legislation. (more…)