(By the way, I think the idea of rolling over unspent medical expenses into retirement accounts is fantastic.)

Better idea: Roll it over into the next year's health account. That way, the health account gets bigger as the employee ages (and his her health expenses inevitably increase, even if only by way of mammograms and prostate checks).

$5000 might not be much for someone getting regular chiropractic care (for instance), but it would at least significantly reduce out-of-pocket expenses.

All in all, not too bad; I've always supported the notion of HSA's. Indeed, I've always wondered if there could be a way to combine the best features of an insurance plan with the best features of an HSA, wherein you could always be covered for necessary procedures, or technically "elective" procedures that are really necessary (hernia repairs, for instance), and for catastrophic events, but regular doctor visits and preventative care would be covered on a more finite basis, depending on how one was vested in the plan, and how much actual resource had been set aside.