The advantages of a health savings account are enormous !
Providing ” Security “. – Your HSA and your HDHP protect you against unexpected or high medical bills.
Providing ” Affordability “. – A high deductible health plan should lower health insurance premiums.
Providing ” Flexibility “. – Your funds in your HSA account may pay for current medical expenses, health insurance premiums or medical expenses if unemployed, medical expenses after retirement but before Medicare, long term care premiums and expenses, and out of pocket expenses when on Medicare.
Providing ” Savings “. – You are able to save your money in your account for your future medical eligible expenses while growing the unused portion of your account through investment earnings.
Providing ” Control “. – You decide: how much you contribute (up to the yearly maximum allowable), what medical eligible expenses to pay, which financial facility will hold the account.
Providing ” Portability “. – Your health savings account plan is completely portable even when you change: jobs, your medical carrier, your marital status, become unemployed or move to other states.
Providing ” Ownership “. – Unused funds remain in your account year after year and accumulate interest just like an IRA. There are NO ” use it or lose it ” rules with an HSA account. Your unused funds are yours with HSA.
Providing ” Tax savings “. – Tax deductions when you contribute, tax free earnings growth, tax free withdrawals for qualified medical expenses.
Health savings account law was signed on December 8th 2003. Health savings accounts receive tax favorable treatment (like an IRA) but are used for future medical expenses. HSA, short for health savings account are most commonly and eligibly used by an individual, family, the self employed and groups for health, dental and vision care expenses. A much broader list of “qualified medical expenses” is provided in Pub 502 of the IRS.
Any adult here in the states can have an HSA if: …they have health savings account insurance or an HSA – which is a qualified high deductible health plan also referred to as HDHP….they have no other first dollar medical coverage. (certain plans such as but not limited to specific injury insurance, accident insurance, disability insurance, dental care, vision care or long term care insurance are permitted….they are not on Medicare….cannot be claimed as a dependent on someone else’s federal tax return.
Contributions can be made to an HSA by yourself, by your employer or by the both of you.
The excitement and real benefits of an HSA are many. First you save substantial premium dollars by buying a lower cost (HDHP) high deductible health plan. You save tax dollars today by writing off your HSA contribution. You pay future out of pocket medical expenses with pre taxed dollars.
By far the most commonly used type of health plan for a HDHP is the major medical. For those have concerns about the exposure of a higher deductible until you have made contributions to your HSA, might consider purchasing a separate accident plan which is generally inexpensive and can easily help offset deductible exposure for unexpected and untimely injuries. Suite Solutions or Secure Solutions offered through Assurant Health can put you at ease in that first year or so being a HSA consumer.
Simply put you should investigate a health savings account quote today on a qualified health savings account plan from a quality health savings account insurance company. There are many to choose from today such as Assurant Health, Health Partners, PreferredOne, Medica, Time Insurance company and a host of other quality carriers.
Not everyone is a candidate for health savings account plans but the vast majority are once you realize the savings and benefits of a medical health savings account. Talk to one of many qualified agents or brokers today to see if you may qualify for an HSA insurance plan.
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