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A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to income tax, but can only be used to pay for qualified medical expenses. These accounts are a component of Consumer driven health care.
Proponents of HSAs, including the Bush Administration, believe that they are an important reform that will help reduce the growth of health care costs and increase the efficiency of the health care system. According to proponents, HSAs encourage saving for future health care expenses and encourage the adoption of High-Deductible Health Plans, which make consumers more responsible for their own health care choices. Opponents of HSAs say they worsen, rather than improve, the U.S. health system's problems. There is also considerable debate about consumer satisfaction with these plans.