Health Saving Accounts (HSAs) are off to a fast start, according to a survey based on responses from 29 members of Washington-based trade association America's Health Insurance Plans. The responding companies reported that HSA / HDHP products covered 438,000 people by the third quarter of 2004.

Only 40,000 medical savings accounts were established in 1997 when they were first introduced into the marketplace, and in ten years they have failed to reach the same level of market penetration that HSAs now have.

In the small group insurance market (defined as serving firms with up to 50 employees), responding members selling HSA / HDHP products reported enrollment of 79,000. Sixteen percent of the small group policies were sold to employers that previously offered no health coverage to their employees.

Many companies responding to the survey stated that they intend to offer HSA / HDHP coverage in the individual and employer markets in 2005.

The HSA market is booming! Call us today at 1-800-633-3841 and jump on the bandwagon!