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September 07, 2009
Health Savings Account Benefits
"Health is Wealth" is not a very common phrase. But the unpredictability in our lives has made it imperative to have a Health Savings Account. A Health Savings Account will help ease the financial pressure in our later years in life and in an emergency situation.
Below are benefits of a Health Savings Account and how they can help you now and in the future:
* The usage of money in a Health Savings Account is totally dependent on the person who opens the account. However, in case of the money being used on non-qualified medical expenses, the benefits are lost.
* In case of company sponsored health insurance, there is no facility for a rollover from year to year. If you open a Health Savings Account yourself, you get the benefit of a rollover.
* A Health Savings Account is immune to income tax liabilities. So the amount of money saved will be more and fast.
* Health Savings Accounts are quite easy to open. All you need is a high deductible health insurance plan to open a Health Savings Account with a bank.
* In most instances, the account holder also gets a debit-type card, which can be used for the qualified medical expenses.
* The contribution to your Health Savings Account by your employer are excluded from your taxable income.
Those who support Health Savings Accounts propose that these accounts will bring down health care costs, as well as, enhance the efficiency of the health care system. However, the usage of the amount in a Health Savings Account for non-qualified medical expenses can result into lapse of the benefits. So it is advisable that it is used only for qualified medical expenses.
Some of the expenses which come under HSA qualified medical expenses for Health Savings Account are for the treatment of acupuncture, alcoholism, birth control pills, blind services, crutches, hearing aid and batteries, Domestic Aid (rendered by nurse), drug addiction Recovery, drugs - prescription or over-the-counter, Dyslexia Language Training and Hearing Aids. It is also applicable for hospital care, insulin, laboratory fees, Lifetime Medical Care prepaid; retirement home, artificial limbs, nursing Services and obstetrical expenses.
Similarly, some of the non-qualified HSA medical expenses (these don't qualify for the usage of money from a Health Savings Account) are babysitting, childcare, cosmetic surgery, dancing lessons, funeral expenses, future medical care, hair transplant, liposuction, medicines imported from another country, swimming lessons, teeth whitening and weight-loss program.
Learn more about Health Savings Accounts at HSA for America.
Posted by Wiley Long at September 7, 2009 10:54 PM