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February 16, 2010
Health Savings Accounts Save Money with Low-cost Health Insurance
Health Savings Accounts work with health insurance plans that have lower monthly premiums. Premiums for group health insurance rose 9.6 percent last year, and premiums for individual plans rose even more. Yet, insurance premiums for health insurance associated with Health Savings Accounts rose a mere 3.4 percent last year. Amazingly, average premiums for High Deductible Health Insurance associated with Health Savings Accounts for individuals actually dropped 19.5 percent during the past two years.
How is that possible?
With a High Deductible Health Insurance plan, the insurance company doesn’t have to pay for small, frequent charges they cover in other policies. In exchange for a high deductible, you pay less each month in premiums. If you have medical expenses before your deductible is met, you can pay for them with your HSA. If you have no expenses, you keep all the money in your HSA instead of spending it on higher monthly premiums. That money earns tax-free interest just like an Individual Retirement Account (IRA).
An HSA gives you more control over your expenses. It’s your to keep even if you can’t find work. It will grow faster because it earns tax-free interest even if you’re in a high tax bracket. You can’t lose it if you lose a job, change jobs, or retire. If you don’t need it to pay for medical expenses, it’s there for you when you retire much like an IRA. You can find out more about Health Savings Accounts and apply online at our website.
Have questions? Experts who have worked with these accounts for years will answer your questions at no cost at 866-749-2039. You can join the hundreds of thousands of people who have put their trust in an HSA last year alone.
Posted by Wiley Long at February 16, 2010 09:29 AM