Some Interesting Facts About Health Savings Accounts
Read the full report | Health Savings Accounts are tax-advantaged saving accounts for those with high deductible policies
($1,000+ deductible for individuals or $2,000+ for families). These accounts help individuals save and pay for out of pocket healthcare costs with tax-free dollars. Maine is one of the only states to not allow individuals and businesses to deduct Health Savings Account contributions for Maine income tax purposes. Health Savings Account (HSA) contributions are deductible for federal income tax purposes.
On March 1, 2005, the Joint Standing Committee on Taxation of the Maine Legislature held a public hearing on LD 195 “An Act to Conform the Maine Tax Code with the Federal Health Savings Accounts Laws” sponsored by Representative Christopher Rector (R-Thomaston). As yet, the Committee and full Legislature had yet to vote on the proposal. If passed, the Legislature’s Fiscal Office estimated that the state would lose about $600,000 a year in tax revenue. However, as shown below, HSAs provide affordable health insurance options to Mainers and reduce the uninsured.
HSAs are purchased by young and old alike
Nearly half of those who purchased HSA-eligible plans were 40 years old or above.
On the other hand, 34% of Non HSA-eligible plan purchasers are over the age of 40.
HSAs are favored by families, not just individuals
51% of HSA plan purchasers are individuals and 49% are families (37% of purchasers are families with children, 12% are couples without children).
Of families with children, more than 35% purchased HSA-eligible plans versus nearly 24% that purchased Non HSA-eligible plans in 2004.