Though HSAs vary in structure, each

Though HSAs vary in structure, each assigns a larger role to the individual consumer in selecting health care providers and funding health care services. Basic to this approach are insurance plans that feature high deductibles, which are out-of pocket contributions toward the first dollars spent on the account holder's health care in a given year.
The increased front-end consumer contribution is supplemented by defined contributions by the employer. Shortages in meeting medical bills can be covered by cash withdrawals from the individual HSAs, whose deposits are not taxed but whose contents can only be withdrawn for approved personal health expenses .Hight deductibles associated with these new health plans were defined by the U.S. Treasury Department as $1,100 or greater for individuals in 2007. Under a health savings account approach, the expectation is that such deductibles will be indexed upward each year. Deductibles in most HSAs are anticipated to be $5,000 or more for a family