you do need the money for healthcare. Even after you enroll in Medicare and you no longer contribute to an HSA, you can tap your account to pay healthcare expenses, tax-free.”
If all this sounds familiar, don’t be surprised. HSA rules are very similar to MSA (medical savings account) provisions. MSAs have been around for several years and have relatively few customers. Larry G. Jackson, a financial planner with Lincoln Financial Advisors in Columbus, Ohio, is not so sure HSAs will catch on any better than MSAs have: “We have explained MSAs to many of our clients and only a couple wound up with those accounts. Most people don’t like the idea of high-deductible health insurance because they pay their own medical bills until they meet the deductible.” The fate of the new HSAs may depend on whether enough insurance agents have enough incentive to persuade consumers to overcome this reluctance.