The digital era · 2000–today
2003
Health savings accounts
A US law pairs high-deductible health plans with a tax-free savings account.
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 created health savings accounts, available from 2004. People with a qualifying high-deductible health plan can save before tax, invest, and spend tax-free on medical costs.
💡 Why it made sense then
Lawmakers wanted people to shop carefully for health care and to save for their own medical costs.
Ideas it gave us
- 🧭 Health savings account (HSA)
An HSA is a US savings account for medical costs, open only to people with a qualifying high-deductible health plan. Money goes in before tax, can be invested, and comes out tax-free for qualified medical expenses.
Practise with $10,000 in play money
Free. No real money involved.