Health Savings Account Blog

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.