Earlier this year, Congress passed the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which includes new tax provisions allowing the establishment of Health Savings Accounts (“HSAs”) starting in 2004. The Bill was signed into law by President Bush on December 8, 2003. You can access the Conference Report here.
The IRS has now provided some limited guidance for the new Health Savings Accounts in this Notice 2004-2 (via Benefitslink.com).
In addition, this would be a good place to provide a list of all of the articles I have collected so far discussing the new HSAs. These links will be added in the “Recent Hot Topics” Section of links on the right. The articles were written before the IRS guidance was issued:
Chart by the Groom Law Group: “How Health Savings Accounts Compare To Health Flexible Spending Arrangements (FSAs) and Health Reimbursement Arrangements (HRAs).”
Kilpatrick Stockton LLP: “Health Savings Accounts: Medicare Reform Reshapes the Landscape for Active Employee Health Coverage.”
Alston & Bird LLP: “Health Savings Accounts (HSAs): New Option for Consumer Drive Health Care.”
The Galen Institute: “Health Savings Accounts.”
Faegre & Benson: “Health Savings Accounts Under the New Medicare Law.”
Gardner Carton & Douglas: “What the New Medicare Law Means to Employers.”
Kirkpatrick & Lockhart LLP: “Medicare Bill Includes New Health Savings Accounts.”
McDermott Will & Emory: “Impact of the Medicare Prescription Drug Act on Plan Sponsors.”
Roth CPA.com: “The New Health Savings Accounts: How They Work.”
You can also access the IRS Treasury Fact Sheet here.