Describe the origins and reasons for the establishment of health savings accounts

What will be an ideal response?

Health savings accounts (HSAs) were established as part of the 2003 Medicare reform. Individuals make tax-deductible contributions into their HSAs and they can use them to pay for qualified medical expenses. This program is thought to promote the use of personal savings for health care expenditures and add more incentives to reduce costs because bills would be paid directly by the account holder and not a third party.