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March 18, 2010
Health Savings Accounts Help Beat Rising Health Insurance Costs
With the cost of health insurance rising much faster than income, many people are not receiving adequate medical care. The number of people who do not have health insurance grows as layoffs continue. A Health Savings Account (or HSA) offers many advantages, such as lower monthly premiums.
If you are in reasonably good health, you can select High Deductible Health Insurance that can be combined with an HSA. Your monthly premiums will be less, and any money you contribute to your HSA will earn interest tax-free so your balance will grow faster than if taxed. Your Health Savings Account contributions are tax-deductible, and withdrawals from your HSA to pay for qualified medical expenses are tax-free.
You have control of your Health Savings Account, but your employer may also contribute to it. As the account owner, you decide how to spend your money, and the types of investments you want to make your money grow. You take your HSA with you if you change jobs, are unemployed, or retire. Any unused balance rolls over year after year to continue earning tax-free interest.
If this sounds like just what you need, you’re not alone. The second largest bank in the U.S. added 115,000 new Health Savings Accounts last year, and those HSA owners deposited $220 million into those Health Savings Accounts. That brought the total number of Health Savings Accounts at a single bank to 500,000 accounts holding a combined balance of $740 million.
It’s easy to learn more about Health Savings Accounts and apply online at http://www.health--savings--accounts.com. But experts with years of experience with HSA accounts will answer your questions at no cost when you call us at 866-749-2039. As with any retirement account, the sooner you act, the sooner you start to save.
Posted by Wiley Long at March 18, 2010 12:37 PM