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September 21, 2009
Health Savings Accounts - You Can Benefit By Owning One
In today's economy, everyone can use a financial advantage. One way to get a financial advantage for your health insurance is to raise your deductible so you can lower your monthly health insurance premiums. If you raise your deductible to at least $1,150 for single coverage or $2,300 for family coverage, you can take advantage of a Health Savings Account. With a Health Savings Account, you can make a tax-deductible contribution of up to $3,000 (or $5,950 for family coverage) in 2009, which you can use tax-free for medical expenses in any year.
A Health Savings Account (HSA) can be particularly beneficial for early retirees, who can cut their premiums substantially by raising the deductible (you can also contribute an extra $1,000 if you're 55 or older). For instance, a healthy 55-year-old man in Illinois can get a Humana HSA eligible policy with a $5,200 deductible for $207 per month, or $179 with no drug benefit.
You can't contribute to an HSA after you sign up for Medicare, but you can use the money tax-free for medical expenses at any time, and you can use it penalty-free for anything after age 65. You can even use HSA money to cover premiums for Medicare parts A, B and D, and for Medicare Advantage plans (but not to pay medigap premiums). An HSA can also help pay qualified long-term-care premiums.
Learn more about Health Savings Accounts and how they can benefit you at HSA for America.
Posted by Wiley Long at September 21, 2009 10:47 AM