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September 23, 2010
Health Savings Accounts Work for Small Businesses
Small business owners are seeing how combining high-deductible health insurance plans with a health savings account (HSA) can cut their health care costs.
What Are Health Savings Accounts?
These are special savings accounts that work with specific high-deductible health insurance plans, which work just like any other health insurance plan. The advantages come with the HSA.
When you withdraw from your HSA for qualified medical expenses, you can deduct those expenses from your taxable income to reduce the tax payment you owe. If you don't need all the funds for health care costs, your account balance will grow with tax-deferred interest (you don't have to pay taxes on that interest) until you turn 65, just like with an IRA.
Health savings accounts offer attractive alternatives to many people. For example, with insurers dropping maternity riders, women who own their own business need an HSA to help with pregnancy costs.
The number of banks, credit unions and other institutions that provide health savings accounts is continually growing. You'll want to comparison shop to find an HSA administrator with low fees and high interest rates. To get the best information about how to get the most out of your HSA, visit HSA for America. As the leading online experts on the advantages of an HSA, our website has a wealth of valuable information.
Posted by Wiley Long at September 23, 2010 11:29 AM