Health Savings Accounts
Have you heard about Health Savings Accounts, but are not sure if it is right for you? Health Savings accounts are actually broken in to two parts. First you buy a health insurance plan, which includes a single Deductible. Then you will open an HSA account at your local credit union or bank. The bank will provide you with a debit card for the HSA account. The One Deductible plan will usually cost less than the more Traditional health plans. With the One Deductible plan, all health related care (wellness and illness) will be applied towards the One Deductible. The money you save in monthly premium costs are suggested to be used as deposits in to the HSA account (in the bank). When you have a doctors visit, you would use the debit card to pay the visit from your HSA account. The One Deductible health plan will give you millions in coverage once you meet your deductible. That is the advantage over trying to self insure on savings alone. If you never have any medical claims, then you have a savings each year (up to plan deductible amount). This money is a tax free savings! The money in the HSA account is yours. Of course, you must use it for qualified medical expenses only (without penalty). If you pull the money out for non-qualified medical expenses, then you will incur a 10% penalty fee on the amount of the expenditure (unless you are disabled or over the age of 65). Not all One Deductible plans are created equally. If you have found a plan that looks inexpensive, give me a call and we can break it down for you. All insurance companies have limitations they will set on all health plans to control their risk. You may be unaware of them until you have a claim. At not cost or obligation to you, I am here to assess your insurance needs and formulate a plan based on availability and cost. It only takes a minute to reach me and start your analysis today. Contact Us! A partial list of qualified medical expenses: Provided in IRS Pub 502 (available at www.irs.gov)
