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Article: Treasury to provide guidance on new health care accounts; HSAs to replace more limited MSAs.(News)
- Article from:
- Business Insurance
- Article date:
- December 22, 2003
CopyrightCOPYRIGHT 2003 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: JERRY GEISEL
WASHINGTON-The Treasury Department will soon provide guidance on a provision in the new Medicare prescription drug benefit law designed to make it more attractive for employers to set up high-deductible health plans linked to special savings accounts.
A provision in the law that goes into effect Jan. 1, 2004, establishes new savings accounts, called health savings accounts, to replace medical savings accounts. Unlike MSAs, which could be offered only by small employers, the HSAs will be available to any employer. Both employees and employers will be able to make tax-free contributions to the accounts, and plan participants can use ...