What Are Health Savings Accounts?
A very popular Health insurance plan for healthy young people is the High Deductible Health Plan. Its only problem is high deductibles and that is where the Health Savings Accounts come into play.
A Health Savings Account, or HSA, is a tax advantaged savings plan that is designed to set aside money for the payment of certain medical expenses including deductibles and coinsurance payments. In order to enroll in a Health Savings Account, you must be first enrolled in a High Deductible Health Plan.
A High Deductible Health Plan, or HDHP, is what is called a consumer driven health plan. It features very low premiums which makes it very affordable, but also has very high deductibles. What does this combination mean? What it means is that the Insurance is designed for catastrophic medical conditions. Routine medical conditions will be paid by the insured because of the high deductibles.
The Health Savings Account can provide money to use to pay the high deductibles. The accounts can be set up by individuals or by an employer. Employers who offer Health Savings Accounts as part of their benefit package can usually arrange to have the contributions to the plan made on a pre-tax basis. When this is not possible, the contributions are considered as deductible income when taxes are filed.
Like all other plans that allow tax breaks, the Health Savings Accounts are rather strictly controlled by the Internal Revenue Service. Employers are not allowed to discriminate in matched contributions. If they offer them to one employee, they must offer them to all other employees who are signed up in the High Deductible plans. Currently, the maximum yearly contributions to the Accounts are $2,700 yearly for a single person and $5,650 for a married couple.
The money inside the account may be invested in a manner similar to an Individual Retirement Plan and the earnings are not subject to taxation until they are withdrawn. There is no tax or penalty paid on withdrawals that are made to pay medical expenses. Early withdrawals for non-medical purposes are subject to tax and a 10% penalty. When a person reaches the age of 65, withdrawals may be made, free of tax or penalty, for any purpose. The Health Savings Accounts are the subject of much debate within the Insurance industry. Their detractors claim they will cause overall health care costs to rise. Their supporters say this in not true. In a time of rising Health Insurance costs, they are certainly a boon to many individuals who recognize the importance of Insurance in their overall financial planning.
Get Quotes on California health insurance plans at UFCAmerica.com.
Health Savings Accounts - Part 1 - Introduction
This is the first article in a four-part series on Health Savings Accounts.A Health Savings Account (HSA) is an innovative so...
Reduce Your Health Insurance Deductible to $100 for Accidents
Almost everyone can see the logic of carrying a high-deductible health insurance plan to protect against the major unexpected...
Health Savings Accounts Part 3 - High Deductible Health Plan (HDHP)
This is the third article in a four-part series on Health Savings Accounts.The High Deductible Health Plan (HDHP) features hi...
Florida Health Insurance Company
Shopping for an appropriate Florida health insurance can sometimes be overwhelming. If your employer does not sponsor any hea...
Florida Health Insurance Company
Shopping for an appropriate Florida health insurance can sometimes be overwhelming. If your employer does not sponsor any hea...
Companies Move from Health Insurance to Health Savings Accounts
One of the largest issues facing the nation right now is the rising costs of health insurance. Many people can not afford to...
Health Insurance Bankruptcy - A Common Dilemma
Medical bills are the leading cause of bankruptcy, according to a Harvard University study, which also showed that more than ...
Alabama Health Insurance Online Quote - Instant Online Quotes
Searching for instant Alabama health insurance quotes? At the end of this article there's a hyperlink that will lead you to t...
Family Health Insurance Plan - Saving Money is Becoming Easier
Every once in awhile there will be front page news about the health care crisis. The escalating costs for hospital and physic...
Group Health Insurance
Health is wealth, says the famous clich. Keeping the body in perfect shape is important. But equally important is having acce...
Group Health Insurance
Health is wealth, says the famous clich. Keeping the body in perfect shape is important. But equally important is having acce...
Lower Your Health Insurance Premiums Now!
Health insurance costs are close to spiraling out of control. Health insurance premiums are not far behind with no hope in si...
Florida Group Health Insurance Coverage Plans For Business
For business owners, providing group health insurance benefits helps retain high quality employees and ensures better product...
Tampa Health Insurance Online Quote - Instant Online Quotes
Health insurance is no longer a luxury, with today's high cost of health care it's a necessity. You can find affordable healt...
Small Business Health Insurance
Obtaining small group health insurance coverage for business owners can be difficult and time consuming. Most companies choo...
Best Individual Health Insurance Quotes for the Low Rate Health Plans
If you live in the US, you are probably aware that many people are concerned about health plans. In particular, those people ...
Health Insurance Strategist For Massachusetts Employers
If you are in the Insurance Partnership, you will have minor changes to make its provisions mesh with the new law. New lower ...
Health Insurance Types - Cafeteria Plan
A cafeteria plan, also known as Section 125 of regulations of section 125 of the Internal Revenue Code is a separate written ...
Surfing the Waves of Health Insurance in California
For people in California, health insurance is a constant topic of debate. Universal California health insurance programs hav...
Affordable Health Insurance Options in Ohio: An Interview With Ohio Department of Insurance Director
According to the United States Census Bureau, 87.7 percent of Ohioans had some form of health insurance coverage during 2005,...