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As Health Savings Accounts grow in popularity, there is growing fear among those who want to nationalize healthcare that  they will not be able to put the cat back in the bag.  There are already over 3 million HSA owners, and by 2010, the  Treasury Department estimates as many as 45 million Americans will be covered by HSA plans.  They will have billions of  dollars invested to cover future medical expenses, and by then it will be politically impossible to take that benefit away.

If you currently have a high-deductible health Insurance Policy design, you can invest tax-free money in a Health Savings Account.   You get to choose the type of investment – anything from savings accounts or money market funds, to a full brokerage  house.  If you invest wisely, you could have well over $500,000 in the account when you retire.  You will be able to use  that money to commit for your healthcare in whatever way you please, tax free.  You can go to the best surgeons, or the  least expensive doc-in-a-box.  If you decide to treat a condition with acupuncture, homeopathy, or psychic healers, you  can do that too.  Whoever offers you the service you want with the best combination of quality and price should get your  business.  And since you are the one paying, it will be completely your choice.  You have healthcare freedom.

If proponents of a single-payer system were to ever have their way, you would be at the mercy of a government  bureaucrat when it comes to your healthcare.  To see what this may look like, all one has to do is look at the state of  health care in Canada, England, New Zealand, and the parts of Europe that have not yet abandoned single-payer systems.

Proponents of a single-payer system tend to point to Canada or England as countries that cover all their citizens with  quality healthcare, while spending less money per person than the U.S.  But if we look a little more closely, we see that  these publicly financed health Insurance systems are breaking down, the quality is low, and the costs can be quite high.   Here’s what Canadians have to deal with if they need medical care:

- Long waits.  Hundreds of Canadians go to Detroit and other U.S. cities every year for procedures like CAT scans, which  they can obtain treatment in a matter of days.  In Canada, the wait is typically six months.  Currently 876,000 Canadians  are on waiting lists for medical procedures.

- Difficulty in getting life-enhancing procedures done.  If a Canadian is having a heart attack, they will be treated right  then.  But if the surgery is considered “elective” (meaning that possible death is not eminent), the wait could be months or  years.  Average wait for cataract removal is 18 months.  Average wait for a knee replacement is one year.

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Health Savings Accounts are an excellent way to build a second retirement account.  These tax-favored accounts, which  have only been available since January of 2004, can be opened by anyone with a qualifying high-deductible health  Insurance program.  Once you open an HSA account, you can place tax-deductible contributions into it, which grow  tax-deferred like an IRA.  You may withdraw money tax-free to give for medical expenses at any time.

The biggest reason more people don’t retire before age 65 is lack of health Insurance Policy, and many Americans reach age 65  woefully unprepared for the medical expenses they’ll face once they do retire.  One of the most important long-term  reasons for establishing an HSA is to build up some money for medical expenses incurred during retirement.

Fidelity Investments reports that the average couple retiring in 2006 will need $190,000 to cover medical expenses during  retirement.  This assumes life expectancies of 15 years for the husband and 20 years for the wife.

HSAs are, without exception, the best way to build up money to pay for medical expenses during retirement.  You should  not contribute any money to your traditional IRA, 401 (k), or any other savings account until you have maximized your  contribution to your HSA.  This is because only health savings accounts allow you to make withdrawals tax-free to give for  medical expenses.  You can take these distributions anytime before or after age 65.

Your HSA contributions won’t affect your IRA limits — $3,000 per year or $3,600 for those over 55.  It’s just another  tax-deferred way to save for retirement, with the added advantage being that you can withdraw funds tax-free if they are  used to give for medical expenses.

For early retirees who are healthy, a health savings account can also be a smart option to help lower their health Insurance Policy  costs while they wait for their Medicare coverage.  The older someone is, the more they can save with an HSA design.  For  many somebodies in their 50′s and 60′s who are not yet eligible for Medicare, HSAs are by far the most affordable option.

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