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These plans, on the other hand, come with higher deductibles, which the insured must pay out of pocket before receiving insurance benefits. Health Reimbursement Accounts (HRAs), Flexible Spending Accounts (FSAs), high deductible health plans (HDHPs), Archer Medical Savings Accounts (MSAs), and Health Savings Accounts (HSAs) are all examples of consumer-driven health care plans (HSAs). Visit us on Elementary Health. The most recent of these is the Health Savings Account, which has seen rapid growth over the last decade. In the, a Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers. At the time of deposit, the funds contributed to the account are not subject to federal income tax. These can be used to pay for qualified medical expenses at any time and without incurring any federal tax consequences. Another advantage is that money put into a Health Savings Account rolls over and accumulates year after year if it is not spent. Employees can withdraw these funds without incurring any tax consequences when they retire. Federal income taxes are also not applied to withdrawals for qualified expenses or interest earned. ‘A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care,’ according to the Treasury Office. HSAs allow you to pay for current medical expenses while also saving tax-free for future qualified medical and retiree health expenses.’ As a result, the Health Savings Account is an attempt to improve the efficiency of the American health-care system while also encouraging people to be more responsible and prudent when it comes to their health-care needs. It is categorized as a consumer-driven health-care plan. The Medicare Prescription Drug, Improvement, and Modernization Act, which was passed by the US Congress in June 2003, the Senate in July 2003, and President Bush on December 8, 2003, established the Health Savings Account.