HSAs and Obamacare

Concerns were raised that the new health care law would eliminate HSAs. So far, the exact opposite has occurred. HSAs are more popular than ever and projected to more than double in number in the next three years. HSAs are tax advantaged, which call them into question by the IRS as a tax loophole. At the same time though, study after study comes out projecting that people who live into their 80s will spend $150,000+ on health care premiums and expenses above what Medicare covers. So HSAs offer long term planners the opportunity to build up savings that can help pay retirement expenses. Plus, building savings in HSAs allows working people the option to accept more short term health care risk by having a pool of dollars available to help with cash flow needs when health care spending increases.