« January 2010 | Main | March 2010 »
February 24, 2010
Health Savings Accounts Can Lower Insurance Premiums
Health Savings Accounts offer tax deductions for medical expenses, but lower monthly premiums for health insurance may be the greatest advantage Health Savings Accounts offer. Premiums for group health insurance rose 9.6 percent last year, and more than 10 percent for each of the previous six years. Premiums for individual plans went up even more, while insurance premiums associated with Health Savings Accounts only rose a mere 3.4 percent last year. In fact, average premiums for High Deductible Health Insurance associated with a Health Savings Account (HSA) for individuals actually dropped 19.5 percent during the past two years.
Every time you fund your Health Savings Account (HSA), you get an instant tax-deduction, and your HSA earns tax-free interest. Once you have enough in your HSA to cover smaller medical expenses, you can buy High Deductible Health Insurance that has lower monthly premiums than most other types of health insurance. Put the money you save on premiums each month into your HSA, and you get to keep the money instead of an insurance company when you don’t have medical expenses. That’s why it’s called a Health Savings Account.
To take advantage of these Health Savings Account benefits, you need High Deductible Health Insurance that works with an HSA. These high-deductible HSA plans typically have deductibles between $1,200 and $5,950 for individuals, or $2,400 and $11,900 for families. Best of all, High Deductible Health Insurance usually has lower monthly premiums.
It’s easy to compare HSA plans and apply online, but our experts who have worked with these plans for years are also available to help you compare plans. When you call us at 866-749-2039, one of our HSA advisors can answer your questions, and help you select the best HSA options for your situation. The sooner you act, the more you'll save.
Posted by Wiley Long at 08:36 AM | Comments (0)
February 20, 2010
Is a Flexible Spending Account as Good as a Health Savings Account?
While Flexible Spending Accounts and Health Savings Accounts have some similarities, they also have important differences. Health Savings Accounts offer greater control, and more benefits.
While you own and control your Health Savings Account, a Flexible Spending Account is controlled by your employer. That means you lose all the money in your Flexible Spending Account if you leave that employer, but you can keep your investment in your Health Savings Account if you change jobs, become unemployed, or retire.
Money you deposit into your Health Savings Account is tax-deductible, and you decide how to invest it. The interest earned is tax-free while kept in the account, and the interest is not taxed when used to pay for healthcare expenses. Flexible Spending Accounts do not earn interest.
Withdrawals from your Health Savings Account used to pay for qualified medical expenses are also tax-free, and can be used for any healthcare related expenses, including health insurance co-pays and non-prescription medications. If you don’t spend the money you contribute to a Flexible Spending Account each year, you lose it at the end of the year. With Health Savings Accounts, all unused funds and interest are carried over from year to year.
At HSAforAmerica, we understand how HSA plans work, how much you can deposit, and how you can take advantage of these tax savings. We’ll explain your options, and help you find the best HSA plan to meet your needs with Health Savings Accounts.
Posted by Wiley Long at 12:51 AM | Comments (0)
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 09:29 AM | Comments (0)
February 12, 2010
Health Savings Accounts Offer an Effective Solution for Lowering Health Insurance Premiums
Health Savings Accounts are tax deductible savings accounts that allow participants to pay for their qualifying medical expenses tax-free. Moreover, the funds spent on those qualifying medical expenses are actually tax deductible. In addition to providing participants with available funds for their medical expenses, Health Savings Accounts help participants to save for retirement.
While Health Savings Accounts are excellent solutions for growing savings tax-free, they are also associated with high-deductible health insurance plans, which further helps participants to save money each month off of the cost of their monthly health insurance premiums.
Here’s what you need to know about Health Savings Accounts to get started opening your own:
1. First, select a high-deductible HSA insurance plan that you will use with your Health Savings Account. This high-deductible health insurance plan should be a Health Savings Account-qualifying plan, so be sure to check with your health insurance provider to ensure that the account qualifies for Health Savings Account participation.
The good news about these high-deductible health insurance plans is that the monthly premiums for participation are generally far less than the monthly premiums for traditional health insurance plans. As a result, participants are able to save money each month. With the recent health insurance plan rate increases, having a low cost health insurance plan is one of the best ways to protect your budget from becoming strained by health care expenses. In fact, rate increases for traditional health insurance plans was between 9.6 and 10 percent, depending on the plan. Rate increases for Health Savings Account health insurance plans was only about 3.4%.
Moreover, according to Blue Cross Blue Shield of Texas, HSA insurance plan members spent 8% less than Blue Cross Blue Shield traditional insurance clients.
One of the reasons that HSA insurance plans are so effective at helping people manage their expenses is because Health Savings Accounts are consumer-directed and managed. As such, participants are in control of where they spend their healthcare dollars, which causes them to question their medical expenses and pay better attention to their health, in many cases. By being in more control of their healthcare expenses, many people take more time to focus on natural ways to maintain better health, such as weight loss measures, vitamins, and proper nutrition.
2. Funding your HSA will result in a tax deduction that is equal to the amount of money that you deposit into your Health Savings Account. Therefore, you will not only save money off of the lower cost of the monthly health insurance premiums, but you will also pay fewer in taxes each year. There are maximum contribution limits for Health Savings Account and these limits change every year. The maximum limit is determined based on the type of account, such as an individual account or family account.
3. HSA owners also have more options if they want to change insurance companies. As long as HSA participants stay healthy, they should be able to qualify for health insurance coverage with other companies, which ensures that health insurance companies will continue to compete with one another by offering the lowest possible rates on high deductible health insurance plans. By staying healthy, you’ll have more options if the insurance plan rates increase out of your budget.
Health Savings Account participants should be sure that they pay careful attention to their options when it comes to wellness and disease prevention so that they can stay healthy longer. By staying healthy the natural way, individuals will have an easier time qualifying for health insurance plans with low rates – and they will spend less money out-of-pocket or from their Health Savings Accounts on their healthcare.
Here are a few tips for ways that individuals can stay healthy and reduce their long term health care costs:
• Make about 35% of your daily calorie intake from fruits and vegetables. By eating plenty of fruits and vegetables, you can help to avoid developing diabetes, hypertension, heart disease, and cancer.
• Limit sugar and starchy carbohydrate consumption, including white pasta, candy, and potatoes. These high-starch foods can be hard on the metabolic systems of the body – especially amongst people who have difficulties with their insulin.
• Get plenty of exercise, including weight-lifting exercise.
• Review your health insurance plan options at least once a year to ensure that you are getting the best plan for your needs and budget.
You may also want to consult with a qualified HSA advisor to make sure that you have all of the information you need to make a wise decision for your health, budget, and lifestyle. An HSA advisor can also help you find the right high-deductible Health Savings Account for your needs.
Posted by Wiley Long at 06:06 PM | Comments (0)
February 07, 2010
Alabama Legislator Hopes to Offer Pre-tax Health Savings Accounts
An Alabama legislature hopes to create tax-free Health Savings Account options for Alabama residents. According to Federal laws, families and individuals can have Health Savings Accounts that help them reduce their annual health care costs and tax burdens. However, the state of Alabama does not offer its residents tax-free Health Savings Accounts.
Rep. Greg Canfield (R-Vestavia Hills) introduced a new bill to the Alabama House of Representatives on January 12 that would allow individuals and families in Alabama to deposit their pre-tax earnings into a Health Savings Accounts to help cover qualifying medical expenses.
The bill, House Bill 101, would also ensure that the principal and interest earned on those Health Savings Accounts would be tax-free.
“Specifically, it would establish that individuals or businesses would be able to put money in an account and have the principal and interest shielded from state income tax,” said Canfield. “It gives the ability for small and medium businesses to reduce costs for medical benefits and those (companies) not providing it a chance to do so. It would also expand medical insurance in Alabama for individuals who are not able to afford it by setting aside money on a tax-shielded basis.”
If the bill is passed, individual account-holders in Alabama could contribute a tax-free$1,500-$2,250 to their Health Savings Accounts per year. Families can contribute $3,000-$4,500 tax-free. These funds would be earmarked to pay for qualifying medical expenses, but can be withdrawn to pay for any expenses. Along with the Health Savings Accounts, participants will need to enroll in high-deductible health insurance plans in order to qualify. Canfield noted that the savings for a family of four that participates in a HSA plan could be between $125 and $275 per year, but varies based on the amount of the annual contribution.
Posted by Wiley Long at 05:06 PM | Comments (0)
February 04, 2010
An Overview of the Aetna Health Savings Account Plan
If you’ve never heard of a Health Savings Account, then it’s time to take a look at this increasingly popular health insurance plan option that has become available for Americans and their families. Aetna is one of the many health insurance companies that offers the Health Savings Account option. The Aetna Health Savings Account is similar to its HealthNow PPO and Aetna PPO Plans.
However, while the Health Savings Account option helps many Americans save a significant amount of money each year off of the cost of their healthcare expenses, there are some important things that everyone will want to know about before enrolling in a Health Savings Account plan.
To fully understand how Health Savings Accounts work, many individuals will want to speak with qualified health insurance agents to find out specifically how Health Savings Account plans can help them save money and get the best health insurance possible for their specific health situations.
Here’s what you need to know before enrolling in an HSA plan:
* A Health Savings Account is a savings account that is similar to an IRA in that participants can deposit money into the Health Savings Account that they can then invest into high interest-yielding vehicles, such as stocks and bonds.
* Some employers who offer Health Savings Accounts match the contributions that employees make, or add their own money to the employee’s Health Savings Account.
* Contributions made to a Health Savings Account are tax-free and can sometimes come pre-tax, depending upon how an employer sets up a Health Savings Account.
* There are maximum contribution limits each year. In 2010, the limit is $3,050 for an individual and $6,150 for a family. These amounts include an employer’s contribution, if applicable. Also, account-holders age 55 and older also may make annual catch-up contributions of $1,000.
* Savings from the Health Savings Account grows tax-deferred. As long as withdrawals are used to pay for qualifying medical expenses, the withdrawal is tax-free. However, if the withdrawal is used to pay for a non-qualifying medical expense, then the withdrawal is taxed only upon the withdrawal.
* The Aetna HSA program comes with a Visa Debit Card that you can use to pay for qualifying health care expenses after your Health Savings Account is established. This account also lets you track your activity online anytime.
* Many people choose to pay for their medical expenses out of pocket to avoid withdrawing money from their Health Savings Accounts.
Many employees who have the option of enrolling in a Health Savings Account through their employer can not only build their savings and grow their wealth, but they can also get more control over their health care expenses and health care coverage.
The High Deductible Part of the Plan
Along with the Health Savings Account, participants need to have a high deductible health insurance plan that meets the Health Savings Account qualifications. There are IRS requirements for the type of Health Savings Account health insurance accounts that qualify for coverage:
* In 2010, for each individual, the deductible for the Aetna Health Savings Account is $1,200 for in-network or $2,400 for out-of-network health care coverage.
* In 2010, for family coverage, the deductible is $2,400 in-network or $4,800 out-of-network coverage.
With the Aetna HSA plan, the deductible may be waived for some healthcare expenses that the IRS considers to be preventive or wellness visits, as well as for a short list of prescription drugs. Also, some preventative care treatments are covered without the deductible requirement.
Once the deductible is met for a Health Savings Account health insurance plan, the health insurance provider will cover all remaining healthcare expenses for that year with a cost-sharing arrangement.
Prescription Drug Coverage and the Health Savings Account Plan
Medco, Aetna’s pharmacy benefit management company, has developed a list of prescription drugs that the IRS considers to be preventative. These medications are not subject to the deductible before they are covered. For drugs on the preventive list, Aetna Health Savings Account plan members will only need to pay the applicable copay for the medications.
If the IRS determines that a healthcare service or product does not meet their definition of preventative care, they may be subject to the deductible requirement.
An HSA plan may be right for you if you:
* Are able to afford the maximum annual health insurance deductible limit.
* Can set aside funds to use to cover future healthcare expenses.
Contact a qualified Health Savings Account advisor to learn more about Health Savings Accounts and to find the right Health Savings Account option for you and your family.
Posted by Wiley Long at 06:05 PM | Comments (0)
February 01, 2010
How a Health Savings Account Can Help to Protect Your Finances
If you have health insurance, you might be surprised to learn that a starling 16.6% of American adults are still uninsured, despite the high degree of attention that has been given to health insurance issues in the U.S. lately. Many American adults without health insurance are put into a tricky situation when they have a catastrophic injury or illness and are then stuck with an expensive emergency room or ICU bill. According to many, living without health insurance is a high stakes gamble that too many Americans make every day.
However, there is hope for those Americans who either can’t afford traditional health insurance or don’t qualify for health insurance plans that suit their budgets because of existing health conditions. Health Savings Accounts are available to help Americans obtain low-cost health insurance and set aside money in a savings account that can be used to pay for healthcare expenses that are not covered by their health insurance plans.
Health Savings Accounts have grown steadily in popularity since they were first created in 2003. The primary role of Health Savings Accounts is to provide participants with health insurance protection in the event that they have a catastrophic illness or injury. Health Savings Accounts are used in conjunction with high-deductible health insurance plans that have low monthly premiums that are affordable for just about anyone.
In addition to the low-cost HSA insurance plan that is associated with the Health Savings Accounts, participants establish specific Health Savings Accounts, which are savings accounts, in a sense. These savings accounts are similar to an IRA, in that the funds that a participant deposits into the savings account can be invested into high interest-yielding stocks, bonds, and other investments to help grow the savings amount. Moreover, the funds that a person deposits into a Health Savings Account are tax-deductible, which means that those funds will reduce the person’s annual tax burden.
Some individuals who have Health Savings Accounts are able to save thousands of dollars each year as a result of their participation. Here are some of the ways that Health Savings Accounts can help participants to save money:
* Contributions to a Health Savings Account are tax deductable
* Funds withdrawn from Health Savings Accounts for qualified healthcare expenses are tax-free
* Investment earnings from the funds in the Health Savings Accounts are tax-free
* Participants keep the funds from their Health Savings Account even if they move, change jobs, become unemployed, change marital status, or change health insurance policies
* Participants are in control the amount of money saved in the Health Savings Accounts, including deciding when to use those funds for expenses, and how to invest the money
* Funds can be set aside and continue to grow to use for future medical needs
* Both individuals and employers can make contributions to Health Savings Accounts
HSA Administrators (Banks, credit unions, and other financial institutions) can help Health Savings Account participants set up their accounts. However, in order to qualify for participation in a Health Savings Accounts, participants should meet the following criteria:
* They must be enrolled in a qualifying high-deductible HSA health insurance plan
* They can only be covered under one health insurance plan
* They must not be listed as a dependant on a tax form
* Participants cannot have Medicare coverage
Contact us today for more information about how Health Savings Accounts can help to save you and your family a significant amount of money each year while ensuring that you receive the best possible health care coverage for your needs.
Posted by Wiley Long at 01:40 PM | Comments (0)