Bill Expands Availability of Tax Savings Accounts for All Americans,
Creates Important Health Care and Insurance Incentives
MILWAUKEE, June 5 /PRNewswire/ -- Fortis Health, the oldest national
health insurer and leading provider of Medical Savings Accounts (MSAs),
announces its support of the Health Savings Account Availability Act,
introduced today by House Ways and Means Committee Chairman Bill Thomas (R-
CA). The bipartisan act creates Health Savings Accounts (HSAs) to make health
insurance more affordable and tax-advantaged for Americans, while putting
individuals in control of their own health care.
"We're very excited about this important step toward greater health
insurance affordability, tax equity and consumer control," said Don Hamm,
Fortis Health President & CEO. "As the nation's pioneer and leader in MSAs
and through our continued innovation in offering products like One Deductible
and Health Reimbursement Arrangements (HRAs), Fortis Health actively supports
the availability of consumer-focused health plans for individuals, families
and small businesses."
Hamm added that enactment of this legislation will create a powerful new
incentive to purchase health insurance for Americans who currently do not have
coverage, and noted that the bill also provides important tax incentives for
people who purchase their own insurance. "This will encourage all-around
wiser decision-making among health care consumers," concluded Hamm.
HSAs are a savings account combined with a high-deductible health policy,
but can also be combined with Flexible Spending Accounts (FSAs), which
employers currently offer. Although similar to MSAs that exist under current
law, HSAs will remove many of the barriers that have limited the use and
effectiveness of MSAs -- the most important of which is making tax savings
accounts available for all Americans. Currently, these accounts are only
available to small businesses and the self-employed.
Under the Health Savings Account Availability Act, HSAs would:
-- Be permanent and portable;
-- Be available to all individuals with a qualified high-deductible plan;
-- Have a minimal deductible of $1,000 per individual plan and $2,000 per
family plan;
-- Allow annual contributions to equal 100 percent of the deductible;
-- Allow both employer and employee contributions;
-- Be marketed by Preferred Provider Organizations;
-- Be offered by cafeteria plans;
-- Not place a cap on taxpayer participation; and
-- Allow tax-free roll over of up to $500 in unspent Flexible
Spending Accounts. These balances are currently forfeited at the end
of each year.
Fortis Health offers several innovative high-deductible health plans that
can accompany an HSA. Following today's introduction of the bill by House Ways
and Means Committee Chairman Bill Thomas, it is expected to be incorporated
into other legislation to be considered by the Committee. For more
information, visit http://www.fortishealth.com .
About Fortis Health:
Fortis Health ( http://www.fortishealth.com ) is the oldest national health
insurance company and a leading developer and provider of Individual Medical,
Small Group, Short Term and Student Health Insurance products, issued and
underwritten by Fortis Insurance Company, John Alden Life Insurance Company
and Fortis Benefits Insurance Company. In business since 1892, the company
provides health insurance coverage for over one million people nationwide.
With almost 3,000 employees, Fortis Health is headquartered in Milwaukee,
Wis., and has operations offices in Minnesota, Idaho, and Florida, as well as
107 sales offices around the country.
Fortis Health is a business unit of Fortis, Inc., a financial services
company that, through its operating companies and affiliates, has built
leadership positions in a number of specialty insurance market segments.
Fortis Inc. is a part of Fortis, a financial services provider active in the
fields of insurance, banking and investment. As of year-end, 2002, Fortis had
total assets of approximately $500 billion. Fortis ranks 31st based on assets
and 85th based on revenues on the Fortune 'Global 500' (July 22, 2002) and
38th on the Forbes Global 'Super 50' list (July 3, 2002).
SOURCE Fortis Health
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Related links:
http://www.fortishealth.com
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Media, Michelle Love-Johnson of Seroka Public
Relations, +1-262-523-3740
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