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September 12, 2005
Using your Health Savings Account to pay for Maternity bills
On individual health insurance policies, maternity coverage can be quite expensive, and is often not worth the cost. One option those expecting to get pregnant should consider is a Health Savings Account (HSA). Purchasing a qualified high-deductible health plan and setting up an HSA could allow 100% of those maternity expenses to be tax deductible.
Let's say a family experiences $6,000 in expenses to have a baby. This might include doctor visits, ultrasounds, doctor prescribed prenatal vitamins, and delivery. If the family has a qualifying plan, they can deposit $5,200 in their HSA, which can then be used to cover those expenses. The remaining $800 in expenses can be recovered from the following year's HSA deposit.
This cuts costs dramatically. It also allows for coverage that might not be paid for by a traditional maternity rider, such as for a mid-wife, or alternative health treatments.
Posted by Wiley Long at September 12, 2005 03:19 PM