NPR has an interesting story on private healthcare spending accounts. Seems money is missing from thousands of accounts:
Thousands of people are learning that money they squirreled away in health savings accounts is gone. Many thought the money was sitting safely in banks. But now it appears it was stolen.
Federal investigators have released few details, but all the cases have one thing in common: a Chicago company called Canopy Financial.
It is happening in Maryland as well, where 17 million dollars is missing:
Nearly 14,000 customers of Maryland-based Coventry Health Care also are affected. An attorney for the company, Neal Colton, says $17 million is missing. Coventry has replaced that money for its customers and will try to recover as much as it can in the bankruptcy.
One wonders how prevalent this is? At any rate some are calling for HSAs to be regulated but advocates of HSAs argue that regulation is premature and that the buyer should beware. Not exactly comforting considering the Republicans want to scrap Social Security and Medicare and throw people into private accounts.