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November 26, 2010
It's Easy To Start Your Own Health Savings Accounts
Banks are making it easier to join the ten million health savings account (HSA) owners, and health savings accounts are growing both in number and in deposits.
Is a health savings account right for you? That depends on your taxable income and your current healthcare expenses. If both are high, you may be able to reduce your taxable income by using an HSA to make your healthcare expenses tax deductible.
Unfortunately, there are limits on which high-deductible health insurance plans work with an HSA. HSA plans that are qualified to be combined with an HSA have higher premiums than some other high-deductible policies.
Over-the-counter medications will no longer be reimbursable from an HSA, but it is still ok to use your HSA for insulin or prescribed medications. The penalty for using an HSA for non-qualified expenses is doubling from 10 to 20 percent.
As an HSA owner, you'll find that investment and service options typically increase for higher HSA balances. It’s similar to checking account options, but most HSA administrators charge fees for their services. The fees vary significantly so it's important to compare HSA administration fees and services. For more information on setting up your own HSA, please visit: http://www.health--savings--accounts.com
Posted by Wiley Long at November 26, 2010 10:21 AM