― Forecasting Total Medical Expenditures

Health Savings Account (HSA) Background • HSAs are individual health care financing vehicles legislated into existence by the 2003 MMA ― A product of “consumerism”, which attempts to engage consumers in their health care choices, mitigate moral hazard and expose consumers to the true cost of health care ― HSAs are increasingly under scrutiny because of their novelty and because President Bush has set out an agenda to expand HSA enrollment and eligibility through further tax subsidies and changes to contribution limits ― Available public data for empirical research has been very sparse to date. © 2007 Urix, Inc. 4 What does an HSA look like? Design • For 2007, the HSA contributions used to fund the “donut hole ” are limited by the lesser of $2,850 (indexed) or the HDHP deductible ― Amounts not used in current year roll over to the nex