June 6, 2006 12:39PM

Unnecessary Restrictions Are Holding HSAs Back

Federal law requires consumers to have a “qualified high‐​deductible health plan” before they can open a tax‐​free health savings account (HSA). Today, Sarah Rubenstein of the Wall Street Journal reports that those rules make HSA‐​compatible coverage more expensive than necessary. 


In a recent paper, I argued that Congress actually requires HSA holders to have a “high‐​but‐​not‐​too‐​high‐​deductible health plan,” and that Congress should let consumers choose their own health insurance.