Information about tax-saving Health Savings Accounts, a relatively new program, is available to ISBA members through Marsh Affinity Group Services, third-party insurance administrator for the state bar association.

Created as a provision of the Medicare Prescription Drug and Modernization Act, effective Jan. 1, 2004, the Health Savings Account (HSA) helps an individual to save for qualified and retiree health expenses on a tax-free basis.

Advantages are that contributions to the HSA are tax deductible, they belong to the individual and are fully portable, they earn tax-free interest, and distributions are not taxed if used for qualifying medical expenses.

The first step in opening an HSA is to purchase a qualifying high deductible health plan (HDHP). The individual must not be enrolled in any plan that isn't a HDHP, or enrolled in Medicare, or claimed as a dependent on someone else's tax return.

For complete information, contact Marsh Affinity at isba.healthinsurance.com or (877) 886-0110.