HSAs Remain Under Consideration

The Office of Personnel Management is continuing to consider adding “health savings accounts” to the Federal Employees Health Benefits program, OPM officials have told a House civil service subcommittee hearing. HSAs, authorized by last year’s Medicare reform bill, are available to anyone under age 65 in a high-deductible health plan-defined as one with annual deductible of at least $1,000 and annual out-of-pocket expenses of up to $5, 000 for single coverage, and double those amounts for family coverage-meaning about three million of the more than eight million people covered by FEHB would be eligible. HSAs allow enrollees to put in annually pre-tax amounts of up to $2,600 for individuals and up to $5,150 for families, with the money available for medical expenses. Unused amounts would earn interest and would remain available for later years. In addition, those over age 55 could make additional catch-up contributions ($500 this year) and employees could take the accounts with them if they changed jobs. Under the law HSAs are open to retirees, although only to those under age 65.