HSA Health Insurance

Health Insurance with an option to open a Health Savings Account

The concept is simple. You pay for all expenses below the deductible at a discounted rate. Monthly premium saving are significant - typically 30% to 40% less expense than Traditional Copay Plans. HSA Health Insurance can save you thousands of dollars a year in health insurance premiums. They also have a lower Out Of Pocket to you if you should have a critical illness or injury.

You do not have to open a savings account (HSA) with this type of insurance. The HSA savings account is optional and separate from the Health Insurance. Some people choose to just pay for their medical bills below the deductible from their regular checking or savings account. But you must have a qualified type of insurance to open a HSA savings account and get the tax advantages. All qualified Health Insurance that is HSA compatible is labeled "HSA". You can open a tax deferred HSA savings account anytime after you have the qualified type of HSA Health Insurance. The money in the savings account is yours and rolls over every year.

Income Tax Savings. A single person can deposit up to $3,000.00 and a family $5,950.00 in an HSA, each year. If you are in the 25% tax bracket you will essentially be saving $750.00 a year on your income taxes. A family in this same tax bracket can save $1,487.00. If you are self employed you can write off the cost of your health insurance and your HSA deposits can also reduce your tax bill. It is like a double whammy on the tax code.

Do I have to make monthly deposits to my HSA account? You can get HSA accounts that do not have a mandatory deposit requirement. You can even get the qualified HSA type of health insurance and not even open up an HSA if you do not want to. But the option to open the HSA is there when you are ready.

Who has control over the money invested in a Health Savings Account?
The account holder controls all decisions over how the money is invested. Money in your HSA account is yours. What you do not use stays in your savings account and collects interest.

Can the funds in an HSA be invested?
Yes, you can invest the funds in your HSA. The same types of investments permitted for IRAs are allowed for HSA's, including stocks, bonds, mutual funds, and certificates of deposit.

Will my bank notify me if I've exceeded my allowable contribution amount?
No, it is your sole responsibility to keep track of the amounts deposited and spent from your account, just like a normal savings or checking account.

Who Is Eligible for HSA?

• Any individual that:
  
  
  • Is covered by an HDHP (You must have a qualified High Deductible Health Plan to receive the benefits).
    
    
  • Is not covered by other health insurance or claimed as a dependent on someone else's tax return
    
    
  • Is not enrolled in Medicare
    
    
  • Children cannot establish their own HSA
    
    
  • Spouses can establish their own HSA, if eligible
    
    
  • No income limits on who may contribute to an HSA

Qualified HSA Medical Expenses

HSA savings can be used to pay for many types of medical expenses beyond what is covered by your insurance plan. These expenses include medical payments toward your deductible, dental services, vision, alternative medicine, long-term care services, prescription drug and certain over-the-counter drugs.

How to set up an HSA:

• Select and apply for a qualified HSA health plan
  
  
• Set up an HSA tax favored savings account with your insurance carrier or other qualified institution.