Confused About HSA’s?

Written by Michael G. Kirwan, ChFC, CLU
Published Summer 2005 in the Union and Morris County Newsletters


The Kirwan Companies is one of the largest producers of HSA’s in the State of NJ and we have experienced an overwhelming interest in this “New/Old Program”, designed to allow you, the consumer, to control your own Health Care Costs!

HSA’s were formally signed into law in November of 2003, effective for 2004. They are really not new but rather the Big Brother of MSA’s, which have been available since 1997, through the Kennedy–Kassenbach legislation. MSA’s were initiated on a trial basis, and while they initially only enjoyed mild attention, MSA’s were never part of the Federal Law but survived a number of Federal Sunset provisions, which were continually extended every 2 years, until the passage of the HSA, which is now finally a part of the Federal Law.

With the passage of the new law and the increased popularity among both the public and the carriers, many varieties of HSA Programs have evolved. Plans having both PPO and Managed Care models, which will dictate how your provider will be paid and what might be applied toward your deductible, with confusing co–pay’s, deductible’s, co–insurance’s and varying maximum “OOP – Out of Pocket” costs are now being offered, and you need to carefully investigate more than just the 35% – 60% discounted premiums.

Before considering any changes, it is important for you to know that your practice may have “multiple plans”, and we can assist you in determining who may most benefit from participating in an HSA plan. For those who may not benefit from or simply are not interested in managing their own health care, we can structure alternative plans to be offered in conjunction with your HSA Program.

On the reverse side of your insert, we have attempted to provide you with an overview and comparison of the New Version and Traditional Plans being offered.

Our Corporation has enjoyed over a 30 Year working relationship with the Medical Community, and we are available for telephone discussion, or in person meetings at your office, and we would welcome the opportunity to explain the extraordinary savings and tax benefits/arbitrage associated with the adoption of an HSA and the HSA/IRA.


Page 1 of 11