Bush Administration hopes to bring HSAs to Medicare

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The Bush Administration has plans to try to extend its HAS (health savings account) to the Medicare program, according to Mark McClellan, administrator for the Centers for Medicare and Medicaid Services (CMS), the nation’s top Medicare official, the AP reports.

To help see this to fruition, the administration is looking at various options, including tax incentives which would be designed to make them more appealing.

“As HSAs have become much more popular in the under-65 market, it's time to make them available in Medicare as well,” said McClellan in the interview.

HSAs provide a way for people to put money away for health purposes. The money is tax-free, but the program requires an individual to sign on to health insurance that has a high deductible, anywhere from $1,050 or up to $2,100 for families.