The White House this week is hosting a listening session with conservatives on “Building Great Healthcare in America.” Where should this begin?
Without a doubt, the signature conservative healthcare policy achievement of all time is the creation of the “health savings account,” or HSA. Since their genesis in 2003 (itself a compromise to help pass Medicare's prescription drug benefit and private sector delivery portal), HSAs have become the core nucleus of free market healthcare reform.
An HSA is a triple tax-free account. Contributions are tax deductible. The money deposited can earn interest or even be invested with tax-free growth. HSA dollars can be distributed without tax if used for healthcare expenses. There is no “use it or lose it” with HSAs — any money not spent rolls over year to year, just like an IRA or a 401(k).
