The US Bank has recently tapped into the consumer’s desire to decrease healthcare costs and increase control.

They did this by creating the Health Savings Account (HSA), which is paired with a High-Deductible Health Plan (HDHP).

No ‘use it or lose it’
Any contributions to the HSA account are tax deductible and withdrawals are not taxed when they are used for qualified medical expenses. Withdrawals made for other expenses are taxed as usual plus a 10% penalty if you’re under 65. Additionally, there is no ‘use it or lose it’ requirement. Any remaining funds at the end of the year will automatically carry over to the next year.

Informed decisions
Users of the HSA account also have online access to tools (the Healthcare Toolbox) designed to help them control their healthcare expenses and make more informed decisions. Coverage advisors help determine which health plan is best for the client and their family. They provide the resources to research medical procedures, medications, hospitals, questions to ask the doctor and much more.

Also in other countries?
It looks like the HSA account provides control over healthcare expenses as well as retaining some flexibility. This service is especially important in the US as many American families are struggling to pay for their health insurance and medical costs. But would this be an interesting proposition in other countries, in Europe, Africa and Asia? Offering a health insurance coupled to a savings account and some additional services like the Healthcare Toolbox? A lot of it depends of course on tax rules, but purely from a banking perspective, what do you think?