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February 12, 2008
Health Savings Accounts Creating Healthy Lifestyles and Retirement Income
As we've long said, Health Savings Accounts bring a win-win-win situation for participating individuals, employees, employers and insurance providers a like... Here's how:
Health Savings Accounts promote personal accountability for one's health. By replacing a traditional plan with an HSA-qualified health insurance plan, individuals and employees not only get better coverage but other long-lasting benefits as well.
Health Savings Accounts work best when the account holder learns to save some money to cover near future medical expenses and medical expenses during retirement. The less medical spending incurred, the bigger the value inside the HSA. If one is lucky enough to not require any major medical treatment throughout his or her lifetime, all unused HSA funds roll over to the succeeding years. Eventually, it can become another source of income during retirement.
Because the value of HSA is directly linked to the health of its owners, it also promotes a healthy lifestyle. Those who make a conscious effort to eat right, exercise regularly, avoid alcohol, drugs and tobacco products and adopt a positive outlook on life are the same people who will get the most out of their Health Savings Accounts.
Think of it as a reward for living a healthy lifestyle. Make that a special bonus because good health in old age (or any age for that matter) is a tremendous reward by itself.
HSAs promote the habit of saving for the future. HSA-qualified plans have significantly lower premiums. Some plans have monthly charges of $125 ($1500/year) for single coverage and $250/month ($3000/year) for a family (2+).
This money grows to cover future expenses and deductibles. An employee that contributes $1,500 annually to his or her HSA would have $15,000 in 10 years, excluding interest, assuming no money is taken out for qualified expenses.
Posted by Wiley Long at February 12, 2008 08:51 AM