HSA Health plans

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The concept behind the HSA plans is simple: Take a high deductible, low cost, health insurance plan, and combine it with a tax-sheltered savings account. The insurance company will pay the large medical expenses which surpass the deductible, the plan member will be responsible for the "small bills". The goal is to trim the cost of health insurance by providing incentives to encourage consumers to utilize less expensive, high deductible health insurance plans. In addition, the HSA concept is designed to foster more responsible purchasing of medical services by placing the responsibility of smaller bills in the hands of the consumer.

How does it work?

The HSA savings account functions in a fashion similar to an IRA. Money deposited into the account is 100% tax deductible, and can be used to pay for any medical related expenses -tax free. HSA funds can be easily withdrawn at any time with no penalty or taxes to pay for qualified medical expenses. Withdrawals can also be made for non-medical purposes, but will be taxed as normal income and are subject to a 10 percent penalty if withdrawn prior to age 65. Unused funds continue to grow at a tax-favored rate, like an IRA account. These funds may be used to either cover future medical bills, or supplement retirement. But unlike an IRA, your employer can contribute to your HSA.

What exactly qualifies as a medical expense?

HSAs can be used to pay for many types of medical expenses, even some that are often excluded on health insurance plans. These include:

•		Health insurance plan deductibles, copayments, and coinsurance
•		Prescription and over-the-counter drugs
•		Dental services, including braces, bridges, and crowns
•		Vision care, including glasses and lasik eye surgery
•		Psychiatric and certain psychological treatments
•		Long-term care services
•		Medically-related transportation and lodging

How can I find out more?

Give us a call. We will be happy to fill you in on the particulars.

Health Insurance Plans