When Were HSAs Created? All You Need to Know

Health Savings Accounts (HSAs) were created in 2003 as part of the Medicare Prescription Drug, Improvement, and Modernization Act (MMA). They were designed to help individuals with high-deductible health plans save for medical expenses tax-free.

One key feature of HSAs is that the funds roll over from year to year, allowing account holders to build up savings for future healthcare needs.

HSAs offer some significant benefits:

• Contributions are tax-deductible
• Withdrawals for qualified medical expenses are tax-free
• Interest and investment earnings are tax-free
• Portability, meaning the account stays with you even if you change jobs or health plans

Health Savings Accounts (HSAs) were established in 2003 through the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) to empower individuals with high-deductible health plans to save money for medical expenses in a tax-advantaged way.