In recent years. The ever-increasing cost of health insurance has left many consumers and employers desperate for lower-cost coverage options. As a result, employers are moving away from expensive defined-benefit plans to alternatives that offer higher deductibles in exchange for a reduction in premium costs. The health savings account (HSA) grew out of this quest for choice. The HSA was designed as a tax-efficient way for consumers with high-deductible plans to pay for health costs accrued before the insurance kicked in. These high-deductible plans are touted as being more affordable for both employers and consumers as well as for having the potential to reduce the number of uninsured and underinsured Americans.
Rachael Juhas Suddarth & Mark R. Baran, Just What the Doctor Ordered: Is It Time for Your Bank to Start Offering a Health Savings Account (HSA)? Here's What You Need to Know About This New Product, ABA Bank Marketing, Jan. 2006, at 40.