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March 29, 2007
Health Savings Accounts are Working for More than Just the Young and Health
For some individuals with cronic conditions, a Health Savings Account can be a great option. The best way to decide if a Health Savings Account is right for you is to do a little research.
As an example, we have a client who is diabetic. She found it was possible to get a High-deductible health insurance policy which was savings her $200 dollars in reduced premium each month. Even though her out of pocket expense for insulin and other supplies was over $80 a month she was still saving over $100 a month. This calculated into a $1,200 per year savings that she keeps in her Health Savings Account. She decided that she would prefer to keep the extra money instead of paying it to an insurance company.
Many of the detractors of Health Savings Accounts warn that only young, healthy, financially stable people with good jobs benefit for HSAs because they are the only ones who can afford it. But in reality, the amount you invest in Health Savings Account can be deducted from your annual income tax calculations. In addition, once you deposit that money into a Health Savings Account it is left to grow tax fee. This is not a tax haven for the rich, but can benefit anyone for whom lower taxes mean more money in the bank. Until you do the caculation, you really will not know if a Health Savings Account works for you and your family.
On top of this, you can use the money in your HSA for a wide range of medical expenses such as preventive care, dental checkup, and other medical appoints. You can review all the HSA Qualified Medical Expenses.
As individuals become more responsible for their healthcare, expectations are they will do a better job of shopping for healthcare. From a more optimistic view point, individuals paying medical bills and seeing the real price of medical care will fuel healthy competition among healthcare providers, reduce cost and increase the quality of healthcare.
Learn more about HSAs at: http://www.health--savings--accounts.com
Posted by Wiley Long at March 29, 2007 09:02 AM