There was an article on TheStreet.com by Simone Baribeau which talks about health savings accounts
The article talks about how HSA’s have been touted as a way to make health care more affordable, but they may provide more tax benefits to the wealthy than health benefits to the millions of uninsured looking for affordable medical coverage.

According to the article, a recent General Accountability Office report found that these types of medical savings accounts appeal disproportionately to people who have higher incomes and people who are healthier. In fact, the average adjusted gross income for HSA participants was $139,000 — more than double that of nonparticipants. Over half of people eligible for HSAs don’t participate in them, according to the report.

HSAs allow individuals with only qualified catastrophic coverage plans — plans with high deductibles but relatively low monthly premiums — to save up to $2,900, tax-free, every year to pay for medical expenses. Funds not used one year roll over into an individual’s account the following year.

Proponents argued that HSAs would make health care more accessible by allowing individuals and employers to buy into plans with lower premiums and would discourage people from buying unnecessary medical services.

For healthy individuals who can afford to make large contributions, the benefits go beyond medical: After 65 participants can withdraw income — penalty-free — and use it on nonmedical expenses.

Money deposited into an HSA can be deposited pretax or claimed as an above the line deduction, earnings grow tax-free and no taxes are taken out when funds are used for qualified medical expenses. Though younger people who withdraw funds for nonmedical expenses are subject to taxes and a 10% withdrawal penalty, people over 65 can use the money for other expenses, and it’s taxed only as income.

Essentially, for the healthy, (or for those who get into a more comprehensive insurance plan before they get sick) HSAs can function as something akin to an IRA.

According to the article, whether the accounts are also helping the people who most need money for medical care remains to be seen.