Health Savings Accounts (HSAs) for Health Insurance Savings
Many people have been turning to use Health Savings Accounts (HSAs) to manage their health insurance expenses. Health Savings Accounts allow you to save money, tax free, to be used on almost any medical and health care cost. It works like a bank account and will provide you with HSA debit card to be used when getting prescriptions or paying for other medical costs.
To be eligible for an HSA, consumers have to have a high-deductible health plan, usually a Preferred Provider Organization plan. For an individual to have a high deductible health plan they would have to pay $ 1,150 and for a family it would be around $ 2,300 in 2009. This limit will increase slightly for 2010. However, you can use the funds in your HSA to pay this high deductible.
HSA plans can cover a wide variety of health services including prescription medication, hospital and specialist care, to birth control, acupuncture, eyeglasses and bandages. If you use your HSA plan correctly, it can cover a lot more services and special medical needs than a regular health insurance plan.
The money in your HSA account will always stay in there and not expire at the end of a year. This money earns interest and after you reach the age of 65 you can withdraw the money without being taxed. If you take out money from your HSA account for something that is not included in the policy before the age of 65, then you will be taxed for that given amount. To avoid paying income taxes on your HSA, you can have your employer directly deposit money into your HSA or get a refund on your tax return.
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