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March 01, 2010
Health Savings Accounts Are in Greater Demand Than Ever Before
Chase (the nation’s second largest bank) reported significant growth in Health Savings Accounts. Chase added 115,000 Health Savings Accounts, and $220 million in related deposits last year. That amounted to 500,000 Health Savings Account (HSA) owners with combined account balances of $740 million. So many people are saving with a HSA because they understand this offers a better way to pay for current health expenses, and save for future qualified medical costs. HSA contributions are tax-deductible, and earn tax-free interest. You can also make tax-free withdrawals from a HSA to pay for qualified medical expenses. A HSA also helps you save through the associated lower premiums of High Deductible Health Insurance.
The benefits of Health Savings Accounts can be realized when you pay for health expenses, and while you save for future medical charges. Contributions to your Health Savings Account are tax-deductible, and earn tax-free interest. Withdrawals from your HSA to pay for qualified medical expenses are also tax-free.
With a Health Savings Account (HSA), you choose the types of investments you want to make your money grow. All unused funds left in your account at yearend will be carried over to the coming year - with no limit. An employer may contribute to your account, but you take your HSA with you if you change jobs, are unemployed, retire, or decide to change plans. That’s an important advantage with today’s high unemployment. Certain banks, including Chase, allow you to transfer funds from your checking or savings into your HSA through a secure website, and pay medical expenses online from your HSA.
To take advantage of these HSA plans, you need High Deductible Health Insurance that works with a HSA. These high-deductible plans typically have deductibles between $1,200 and $5,950 for individuals, or $2,400 and $11,900 for families. Best of all, they also usually have lower monthly premiums. It’s easy to compare HSA plans and apply online at our website, but experts who have worked with these plans for years are available, too. 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.
Posted by Wiley Long at March 1, 2010 09:38 AM