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September 29, 2010
Saving with a Health Savings Account: Getting Started
Americans are spending thousands of dollars on health care each year to pay for the cost of monthly premiums along with out-of-pocket expenses as they switch to high-deductible plans for lower premiums. Many people want to know what a Health Savings Account can do for them, but they're not sure how to get started. Here are the basics on using a Health Savings Account (HSA) to save money:
An HSA can only be used with certain high-deductible insurance plans that are qualified to work with health savings accounts. The amount you invest in your HSA can reduce your annual income tax, but that's not all. Any money you leave in your HSA will grow tax free and your annual deposit can be as high as your insurance deductible.
High-deductible insurance plans typically have some of the lowest premiums. You can save on the low premiums and deposit your savings to grow tax-free until needed. If you never need the money for health care, you will be earning tax-free interest until you retire just like with an IRA. You also have a range of options so you can invest your HSA funds with as little or as great amount of risk as you're comfortable.
While the HSA insurance plans may only cover certain health care expenses, your Health Savings Account is more flexible. You can use the money in your HSA for dental checkups, prescriptions, contact lenses, and much more.
To see whether an HSA will save you money, you can learn more about the choices available with the online resources on our website. As the leading online experts specializing in Health Savings Accounts, we've amassed resources to help you choose an HSA administrator, select your qualified HSA health insurance plan and more.
Posted by Wiley Long at 01:36 PM | Comments (0)
September 26, 2010
Health Savings Accounts Still Offer Great Value
With only minimal impact on Health Savings Accounts, health care reform has not dampened enthusiasm for these tax-advantaged plans. "Health plans with Health Savings Accounts offer protection and a tax-free way to invest - all at a cost that usually is less than what purchasers would pay for a lower deductible plan," according to Scott Krienke, senior vice president of Assurant Health, one of the first companies to offer Health Savings Accounts.
Just two changes will effect Health Savings Accounts in 2011. Non-prescription over-the-counter medications, such as aspirin, will no longer be eligible for payment or reimbursement from a Health Savings Account (HSA).
If you do use your HSA funds for anything other than qualified expenses, the tax penalty on such withdrawals increases from 10 percent to 20 percent in 2011.
Otherwise, these tax-favored savings accounts for paying medical expenses will remain basically the same. To see how much you could save by switching from a low-deductible plan to a high-deductible health insurance plan combined with an HSA, visit HSA for American. More than eight million Americans are already enrolled in HSA Plans that helps both individuals and families keep their health care costs down.
Posted by Wiley Long at 11:13 AM | Comments (0)
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 11:29 AM | Comments (0)
September 20, 2010
Consumer-directed Health Plans See Jump In Enrollment
Studies show that more consumers are choosing consumer-directed health plans (CDHPs). According to the American Association of Preferred Provider Organizations (AAPPO), CDHP enrollment rose to around 23 million people in 2009 compared to 18 million in 2008. That shows an increase of 27 percent.
This growth was led by small employers. According to the president and CEO of AAPPO, Karen Greenrose, “At a time when employers are faced with the difficult choice of limiting benefits or raising health care costs to their employees, they are turning to Health Savings Accounts given the cost savings inherent in these HSA plans.”
While employers seem to prefer CDHPs with health savings accounts, employees are more likely to enroll in CDHPs with health reimbursement arrangements or HRAs. Employer contributions are required with an HRA, but employers may also contribute to their employees' health savings accounts.
To see how much you can save with an HSA, visit www.HSAforAmerica.com. You'll find information on selecting high-deductible health insurance that works with an HSA, how to find an HSA administrator and how to maximize your HSA benefits.
Posted by Wiley Long at 07:41 AM | Comments (0)
September 14, 2010
Health Savings Accounts: What You Need to Know Before You Enroll
Employers are moving away from full-replacement benefits toward offering high-deductible health plans to save on their benefit expenses. That makes it more likely that you'll need to understand how to make the most of a Health Savings Account sooner rather than later.
Health Savings Accounts are both savings and investment accounts for medical expenses. Health Savings Accounts work with a high-deductible health plan that typically carries a minimum deductible of $1,200 for an individual and $2,400 for a family.
Here's how it typically works. You enroll in a high-deductible health insurance plan and open a tax-free Health Savings Account at most any bank. You or your employer can contribute tax-free to this savings account, and you can use the funds to help with out-of-pocket medical expenses to offset the high deductible.
If you change jobs or lose your job, all the funds are yours to keep. The balance will keep rolling over from year to year. That's a big difference between an HSA and a Flexible Spending Acccount (FSA). With an FSA, you lose everything still in your account at the end of the year.
Since high-deductible insurance plans seem to be here to stay, why not make the most of their lower premiums and partner them with a health savings account that gives you tax-free interest while making healthcare expenses tax-deductible? HSA for America has a virtual online library that can save you a lot of time by showing you how to set up everything.
Posted by Wiley Long at 10:52 AM | Comments (0)
September 11, 2010
Health Savings Accounts: Now It's Faster Than Ever To Establish An HSA
HSA Bank has streamlined how individuals and small groups can enroll in a Health Savings Account (HSA). By simplifying the enrollment process into four steps, HSA Bank representatives say they have cut the time needed to set up your HSA in half.
As president of HSA Bank, Kirk Hoewisch says, "We strive to make owning an HSA as easy for our accountholders as possible, starting with the enrollment process." Many individuals and small group employees choose to use the bank's Individual Online Enrollment website.
Besides making it easier to enrollment in HSA plans, HSA Bank has also updated its Individual Online Enrollment website with enhanced capabilities. You can see an Individual Online Enrollment demonstration at www.hsabank.com/ioedemo.
You can also learn how to make the best use of these tax-advantaged savings accounts at HSA for America. You'll find a rich online library explaining how HSA plans allow you to earn interest tax-free, how to reduce your taxable income and how to make your medical expenses tax deductible.
Posted by Wiley Long at 10:03 AM | Comments (0)
September 07, 2010
Are Health Savings Accounts The Future of Healthcare?
Health Savings Accounts represent a part of successful healthcare reform that began back in 2004. These accounts offer tax-deferred growth, like an IRA, combined with tax deductions for healthcare expenses. As long as you can have a qualifying high-deductible health insurance plan, you save pre-tax dollars to cover your anticipated healthcare costs.
With both tax-free interest growth and tax deductions for healthcare costs, health savings account (HSA) plans have continuously grown in popularity. Some of their appeal derives from the low premiums of qualified health insurance plans as compared to the premiums of plans with standard deductibles.
Fortunately, healthcare reform has done little to dissuade people from taking advantage of HSA plans. The new law no longer allows HSA distributions to be used for over-the-counter medicines like aspirin, but insulin and prescribed drugs are still qualified withdrawals. The bigger change is related to the tax penalty on disallowed withdrawals. Those will incur a 20-percent additional tax penalty as of January 1, 2011 rather than the current 10-percent penalty. Just use your HSA for qualified expenses and you don't have to deal with a penalty anyway.
Health savings accounts will continue be an integral part of healthcare reform by encouraging savings with tax-deferred earnings and by making healthcare expenses tax deductible. To learn why HSA plans continue to grow in popularity, you can read all about their lower premiums, tax advantages and long-term saving potential at HSAforAmerica.com.
Posted by Wiley Long at 10:02 AM | Comments (0)
September 01, 2010
Health Savings Account Deposits Top $1 Billion for Single Bank
United Health Group Inc., now one of the Twin Cities’ largest banks, has seen its OptumHealth Bank top the $1-billion mark for deposits on its books, and it's all due to Health Savings Accounts. By the end of June, its Health Savings Account deposits were at $1.025 billion. Chartered in Salt Lake City and part of Minnetonka-based UnitedHealth, UnitedHealth has helped thousands of employers to set up Health Savings Accounts for their employees.
There is a growing trend for employers to offer employees these tax-advantaged Health Savings Accounts in combination with high-deductible health care plans. The HSA plans typically keep premiums low, and employees can make tax-deductible withdrawals to pay for qualified medical expenses.
When Congress passed the Medicare Modernization Act in 2003 that allowed tax-exempt deposits and withdrawals for medical expenses for the first time. UnitedHealth opened its first Health Savings Account the very next year in order to simplify health care for its customers. The surprise is that UnitedHealth, with more than $1 billion in deposits, doesn’t even handle retail banking.
To keep you up-to-date on the future of HSA Plans, HSA for America maintains extensive resources to aide in establishing Health Savings Accounts and daily news updates at HSAforAmerica.com.
Posted by Wiley Long at 12:31 PM | Comments (0)