NCUA Chairman Addresses
Health Savings Account (HSA) Symposium
Symposium to increase awareness of credit unions providing access to Health Savings Accounts (HSA)
Fairfax, VA, November 15, 2005 – National Credit Union Administration (NCUA) Chairman JoAnn Johnson delivered the welcoming remarks today to those attending a Health Savings Account (HSA) Symposium at Apple Federal Credit Union in Fairfax, Virginia. The Symposium was aimed at increasing awareness of access to Health Savings Accounts (HSA), especially among Washington D.C.-based credit unions serving Federal employees.
Among those speaking at the Symposium included Mr. Thomas Reeder, Benefits Tax Counselor, Office of Tax Policy at the Department of Treasury, Mr. Daniel A. Green, Deputy Associate Director, Center for Employee & Family Support Policy at the Office of Personnel Management, and Mr. Dennis L. Zuehlke, Compliance Manager of CUNA Mutual Group.
With the high cost of health care in many communities across the United States, the nation’s credit unions are positioned to provide their members with access to affordable health savings accounts (HSAs). Additionally, HSAs provide a more affordable and consumer-friendly product for businesses to offer to employees.
“Health Savings Accounts are a great way for credit unions to assist their members and employees with an option for reducing costs and enhancing affordable healthcare coverage,” said Chairman Johnson. “This ‘nuts and bolts’ symposium was a great way to understand the resources available for credit unions to include HSAs as part of their member services.”
In 2004, the NCUA Board approved final rules changes to NCUA regulations, enabling federal credit unions to serve as the depository institution for member’s Health Savings Accounts (HSA). The rule implements authority contained in the Medicare Prescription Drug, Improvement and Modernization Act of 2003, signed into law by President Bush.
Federal credit unions may offer qualified members the opportunity to establish an HSA. To qualify, a member must have a high deductible health plan, defined as one having at least a $1,000 deductible for individual coverage or a $2,000 deductible for family coverage.
Contributions to an HSA are tax deductible, whether or not the taxpayer itemizes other deductions. Income earned on funds in an HSA accrues tax-free, and withdrawals for qualified medical expenses are not taxable. Unused HSA funds may be rolled over and accumulated from year to year, and the account is portable.
After retirement, but before eligibility for Medicare, an account owner may use funds in this account to purchase health insurance, including long-term care insurance. Any balance remaining in an HSA when the owner reaches age 65 may be used for any purpose. Upon the death of the account owner, account funds may transfer tax-free to a spouse.
For additional information regarding Health Savings Accounts (HAS) visit the US Department of Treasury’s website at: http://www.treas.gov/offices/public-affairs/hsa/
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