Break Out the HSAs as a Viable Health Insurance Option

Its’ no secret that out of all the health plans and ways for health savings, Health Savings Accounts have become quite the rage.  People used to avoid a tax advantaged account like health savings accounts as health insurance because they aren’t familiar with how a health savings account (HSA) work and what qualified medical expenses it may cover. They’re well worth considering because health savings accounts (HSA) save money and provide excellent coverage, save on medical and dental expenses, and other qualified medical expenses.  Here we will explain what makes HSA’s Health Insurance Option #1.

Let’s Talk HSA

A Health savings account (HSA), otherwise referred to as HSAs, are very well advertised, but for some reason people tend to avoid them. Do you need hsa funds in order to cover qualified medical expenses? Don’t confuse health savings accounts with flexible spending accounts. Let’s compare a health savings account (HSA) to flexible spending accounts and the type of qualified medical expenses it may cover. There isn’t a really clear reason for that because on closer examination, a health savings account (HSA) has the distinct advantage of saving you money, along with qualified medical expenses like dental expenses and medical expenses and who doesn’t want to do that these days?

The one thing you need to remember is that health savings accounts (HSA) with hsa funds may only be used in combination with a high deductible health plan (HDHP) for qualified medical expenses. A great question is whether your health care costs or health coverage with a health savings account be covered by your insurance company or if you have qualified medical expenses like medical and dental expenses or other health coverage. Are there any tax advantages to a health savings account or hsa funds? Determining the tax advantages is crucial. The two health care companions function as a tag team, to distribute health insurance and operate as a payment plan. When used together, you get some nice price breaks and the actual benefits extend beyond what your typical Florida health insurance plan may offer like other qualified medical expenses.

Setting up Health Savings Accounts is actually really easy. All you have to do is go to the bank or financial institutions. Remember, for healthcare coverage you also need to get signed up for an health savings account (HSA) qualified high deductible health plan that will have a minimum deductible of anywhere from $1,200 to $2,400, depending on whether it’s individual insurance or a family plan. Looking at your federal income tax return or someone else’s tax return, you’ll see the how you’re able to qualify for health plans like a health savings account (HSA). You will need a qualified high deductible health plan to obtain hsa health insurance. So, along those same lines, if you already have a high deductible health plan and if the plan is just for you, you may put in the maximum of $3,050 or $6,150 for a family. For those over the age of 55, they may toss in an extra $1,000 every year as a catch-up contribution to prepare for medicare premiums. Besides a qualifying high deductible health plan, are there any other hsa contributions or unexpected medical expenses or health care costs you can incur?

You know what the best thing is about a health savings account? You’ll love this if you happen to be younger and in fairly good health, or, older and in good health. If you have a good year and don’t have that many medical expenses, you get to keep what’s in the health savings account for future use. It’s also tax favored health plans. Are the insurance premiums high? What type of tax deduction could you find yourself with? In fact, you can keep adding money every year to your health savings account, setting aside money for future medical expenses, so long as you don’t go over the contribution limit. Note: the yearly contributions to your health savings account have a set limit, manage your out of pocket expenses, but the total savings in the account can be as much as you let it grow. What if you have unused funds? What does that mean for your deductible health plan (hdhp)? That’s pretty appealing; along with the fact you get to control how you spend the money.

Did you know that health savings account money is tax deductible? Do you receive tax-free distributions? And, not only that, but your health savings account grows “tax free” for as long as you use it to pay for “medical expenses.” That brings up a question I hear quite a lot and that involves what people can use their health savings account money for in the first place. The answer to that is you may use it for alternative treatments (acupuncture), some over the counter medicines and even most dental procedures. Hint: not all insurance companies count these payments as part of your deductible, so you might want to check that out first.

We’re Here to Help

The good news is that the list of HSA qualified expenses is nice and long, which is a great benefit to you, because it means you don’t need to separate coverage for things like prescription drugs, dental or vision care. This saves you money as well. The bottom line is an HSA is worth trying and we feel should be your number one choice for HSA’s Health Insurance Option.

Have questions or want to sign up for an Health Savings Account give us a call at 954-282-6891.