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Health Savings Accounts
An HSA is a consumer-owned,
tax-advantaged savings account, created to pay medical expenses, that is always combined with a high deductible health plan.
The benefit of HSAs is in the consumer incentive (it's now their money!) to better plan and use health care resources.
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For additional information on
Health
Savings Accounts (HSAs),
go to the IRS government website.
HSA Information
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Knowledge is power when it comes to your finances.
Medical Insurance has come of age with the introduction of HSA's. It is a great new form of an investment vehicle
offering tremendous financial & tax benefits.
By setting up a Health Savings Account in partnership with an HSA qualified
health insurance plan:
1. Contributions to the HSA are 100% tax free.
2. Make 100% tax-free withdrawals
from your HSA for any qualified medical expense.
3. Interest on your investment gains are 100% tax free.
4. At age
65 the money you withdraw from your HSA, can be withdrawn penality-free for any reason, not just for qualified medical expenses.
What
is a qualified HSA insurance plan?
In order to have a HSA you must have a qualified high deductible health plan. Often
referred to as HDHP, this type of plan typically has lower premiums than plans with lower deductibles.
To be considered
a "qualified" plan, the HDHP must have:
1. An annual deductible not less than $1.150 for individuals and $2,300 for
family coverage;
2. Families must meet the family deductible before eligible expenses are paid by the HDHP;
3. The sum
of the annual deductible and out-of-pocket expenses may not exceed $5,800 for individuals and $11,600 for families;
4.
All benefits must be subject to the calendar year deductible. Copayment can apply to the out-of-pocket maximum after the
deductible is met.
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The Health Savings Account (HSA)
The HSA is
a personal savings account designated to pay for medical expenses. An HSA can be funded by employers, employees, or both.
HSA funds can have a set interest rate or they can be invested in mutual fund options as offered by the account holder.
Funds can be accessed by debit card, check, or online fund transer.
Funds not used continue to stay in the account
and earn interest for future use. There is no "use it or loose it" rule.
HSA funds can be used to pay for many types
of medical expenses, even some that are often not covered by health insurance plans. These include (but are not limited to):
1)
Health plan deductibles, copayments, and coinsurnace;
2) Prescription drugs, and over the counter medication;
3) Dental
services, including orthodontics;
4) Vision care, including glasses, contacts, and lasik surgery;
5) Long-term care
services;
6) Medically related transportation and lodging;
7) COBRA premuims, and certain qualified long-term care premiums.
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Why should I get an HSA?
You can save money
in the short and long term by:
1) purchasing a lower cost HDHP;
2) deducting 100% of your HSA contributions from
your taxable income;
3) earning tax free interest or investment earnings on HSA deposits;
4) paying no penalties or
taxes when you use your HSA to pay for qualified medical expenses.
Note: Some HSAs charge a small monthly maintenance
fee.
PLEASE GO TO THE: "GET A QUOTE" PAGE.(For a Group Plan)
WE WILL CONTACT YOU WITHIN 24 HOURS.
THANKS.
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Catch-Up Contributions
Because a new savings
program tends to favor younger people with more time to save, a "catch-up" provision was included with HSA regulations. Individuals
55 years or older can make additional annual "catch-up" contributions. The maximum catch-up contribution is $1,000 for 2009
and after.
Excess HSA Contributions
Contributions by an individual are not deductible to the extent they exceed
the maximum limits. Excess contributions by an employer generate taxable income to the employee. In addition, a 6% excise
tax is imposed on the excess funds.
The excise tax and any net income attributable to the excess contributions are
avoided if the excess contributions are paid to the HSA owner prior to federal income tax deadline for the year at issue.
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You can apply on line and get free quotes for HSA product marketed
by Golden Rule (A UnitedHealthCare Company) Golden Rule HSA
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