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FOR
IMMEDIATE RELEASE
03/23/2005
Back
Committee approves Health Savings Accounts
Proposed state program would complement existing federal program
The Senate Banking and Insurance Committee recently approved Senate Bill 300, a measure designed to give Pennsylvanians more control of their health care by allowing them to set up Health Savings Accounts exempt from state Personal Income Tax, according to Senator John Pippy, R-37th District.
"I hope we can move this bill through the legislative process as quickly as possible and thereby give families more control over the decisions that affect their health care," Senator Pippy said. "The federal government already provides for Health Savings Accounts and so do many state governments. It's time that Pennsylvania takes this step to allow people to make personal decisions on the best way to provide for their healthcare expenses."
Under SB 300, employers and/or employees could establish and pay into health savings accounts with banks and insurance companies or with other entities approved by the Internal Revenue Service to hold Individual Retirement Accounts (IRAs) or Medical Savings Accounts (MSAs).
Interest on the accounts would also be tax-exempt and withdrawals would be tax free if they were used for the costs of medical or dental diagnosis, cure and treatment. The money could also be used tax-free to cover the costs of equipment, supplies and diagnostic devices.
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Contact: Matt Campion 412.262.2260
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