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January 27, 2006

HSAs- a Wall Street Bonanza

Don't even think that Health Savings Accounts are about health care. They're about padding the fees of the financial services industry, exactly the way privatizing social security would have been:

Banks, credit unions and money management firms are now quietly positioning themselves to become central players in the business of health care, offering 401(k)-type accounts to cover future medical expenses...

Banks and others are drawn by the promise of lucrative fees they can generate by offering consumers mutual funds and other investment vehicles as their account balances grow. Most also charge $50 to $75 to set up a health savings account, and they collect perhaps $40 or more each year in maintenance charges and service fees.

Not since the creation of the individual retirement account in the mid-1970's has such a potentially huge mountain of money landed in the lap of the financial services industry.

Follow the fees. That has got to be the mantra of progressives fighting any expansxion of HSAs

Posted by Nathan at January 27, 2006 10:35 AM