BULLETIN: Effective Jan 1st, 2004, the new HSA (Health Savings Account) will expand the MSA accounts to allow among others, the following improvements:

100% funding of the deductible up to set limits
Permanent program...no longer needs to renewed
No longer requires self-employed status
Both employer and employee funding of accounts for Small Group policies

 Now...on to the Health Savings Account

                    - fund with pre-tax dollars 
                    - accrue interest tax-deferred
                    - pay out medical bills tax-free

HSA's were created to go hand-in-hand with a qualified high-deductible health care plan so that individuals could pay less in monthly dues and put the savings (along with additional funds) in a tax-exempt HSA. An HSA allows you to use tax-free dollars to cover routine and minor medical expenses while you satisfy your deductible-expenses that would otherwise come out of your after-tax income.   

Let's take a better look at how it all works...essentially there are two parts...next page