« October 2010 | Main | December 2010 »
November 29, 2010
Health Savings Accounts Made Easy
Health savings accounts are setting records for the number being opened and the amounts being deposited. With all of this popularity, banks are making it even easier to become a health savings account (HSA) owner.
Will an HSA plan save you money? To decide, look at your taxable income and your medical expenses. If both are high, you can reduce your taxable income by subtracting most health care costs. Just check which expenses can be paid from your HSA without incurring a penalty.
Unfortunately, not every high-deductible health insurance plan can be combined with an HSA. More people are turning to high-deductible health insurance to get lower premiums, but the plans that are qualified to be combined with an HSA have higher premiums than other high-deductible health insurance.
Once you choose a qualified high-deductible health insurance plan, setting up an HSA is easy. You can apply online or request an application by mail. You can also get free professional help to answer questions about HSA plans and how to complete an application.
When your qualified high-deductible health insurance is effective, you can choose an HSA administrator and set up your HSA. Many banks or other financial institutions can help with an HSA. It’s wise to keep your HSA administrator separate from your health insurer so you can switch insurance without having to move your HSA. Fees vary significantly, so do your homework before settling on your HSA administrator. Compare set-up and maintenance fees as well as what institutions charge for transactions.
Investment options should also be investigated. The choices include brokerage services, fixed-interest rate accounts and mutual funds. Some HSA services include checks, debit cards, Internet transactions and online account access, just like standard checking accounts, but most HSA administrators charge for these services. You can find more answers to your questions about HSA Plans at: http://www.health--savings--accounts.com
Posted by Wiley Long at 11:07 AM | Comments (0)
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 10:21 AM | Comments (0)
November 21, 2010
Health Savings Accounts: A Tax-Savvy Alternative
A health savings account (HSA) or a health reimbursement arrangement (HRA) offers more than the medical tax deduction, which has a high threshold. It's been argued that these plans work best for the healthy and wealthy, though.
For 2011, the minimum deductible for family coverage is $2,400 and out-of-pocket costs that include the deductible cannot exceed $11,900. Those numbers are $1,200 and $5,950 for individual coverage. There are no minimum contribution requirements and family contributions may be up to $6,150, while individuals may contribute up to $3,050.
Contributions may come from an employer, employee or anyone else (such as from parent to child) as long as there is a qualifying high-deductible health insurance plan.
Contributions may be made via pretax payroll deductions or tax-deductible contributions by an HSA owner, who has until April 15 to make a contribution for the preceding year. That means you can wait to make contributions until after you have incurred expenses and convert known after-tax payments to pretax ones.
Even though your employer contributes, an HSA remains yours whether you lose your job, change jobs or retire and the funds at not lost at yearend as is true with flexible spending accounts.
You are not allowed to have an HSA plan if your spouse has family coverage through a low-deductible plan. An HSA owner may have supplemental coverage for accidents, dental care, disability, long-term care, vision care, etc. You can use an HSA to pay medical expenses for your spouse or dependents even if that person isn't covered under your insurance. Only your spouse can inherit and use HSA funds tax-free to for healthcare, though.
Qualified expenses that are reimbursable from an HSA include things like contact-lens solution, nursing homes, special education and wigs after chemotherapy (see IRS Publication 502). There's a 20 percent penalty for non-qualified uses, plus you'll owe income taxes on the amounts if you're under 65. If you're 65 or older, you'll have no penalty regardless of how you spend HSA funds, but you'll still have to pay taxes.
Unlike an HSA, an HRA may or may not be paired with a high-deductible policy and your employer owns that account. No one but your employer may make contributions to your HRA, and your employer controls many plan details so it's inaccurate to generalize about HRA details. To learn more about these types of healthcare arrangements, see the resources at http://www.health--savings--accounts.com
Posted by Wiley Long at 04:55 PM | Comments (0)
November 18, 2010
Health Savings Accounts Are Good For Business
If you are a business owner, here are some of the advantages of a health savings account (HSA) for you and your employees.
With an HSA, your employees are responsible to set up and maintain their own accounts. Shifting this work to employees saves you paperwork and time.
Because an HSA may be combined with a group health plan, you're employees will have better coverage than is typically available through individual plans. You'll find lower rates on group plans than on individual plans as well.
Your employees can also lower their taxes with a wide range of tax-deductible healthcare-related expenses, such as dental care.
Look into the advantages of tax-advantaged health savings accounts on our website. You can also read about how to set up an HSA, how to choose the best HSA administrator and more with HSA for America online resources.
Posted by Wiley Long at 10:53 AM | Comments (0)
November 15, 2010
Health Savings Accounts Save Money For Businesses
If you’re a business owner, you may want to consider a health savings account because it can save you money. Whether you provide health insurance benefits to your employees or you are the only employee, when you combine the health insurance benefit with the benefit of a health savings account, you and the business come out winners. The first benefit is that you can typically get lower rates on a group plan than you can on an individual plan. Couple this with the fact that group plans tend to have better coverage, and you’re already a couple steps ahead. Add in the health savings account to the mix, and now you have an opportunity for each employee to reduce their annual income tax obligation too.
Health Savings Account Benefits the Business
Businesses, too, benefit from the use of these types of special health savings accounts that coordinate with the group health plan. The primary benefit is it gives employers or business owners the opportunity to put health care control in the hands of the employees. In essence, this lifts the burden from the shoulders of the business owners or managers. This equates to less paperwork for the business to manage, adds privacy for the employees, and decreases overhead expenses to the business.
Health Savings Account and the Employee
In order to reap the benefits of a health savings account, employees do have to take the step to start up the health savings account. The high deductible health insurance provider typically recommends an institution, such as a bank, but the employee can choose their own institution that offers health savings accounts. The money employees deposit into this account is tax deductible so it reduces the tax obligations of the employee at the end of the year.
it provides health care coverage at an affordable rate, allows them to put away money tax free to cover medical and health expenses not covered by the policy, and reduces tax liabilities.
To find out more about the advantages of the HSA and how to establish one, visit http://www.health--savings--accounts.com/
Posted by Wiley Long at 11:11 AM | Comments (0)
November 10, 2010
Wells Fargo Health Savings Accounts Add New Features
More companies are switching from traditional health plans to health savings accounts. The National Business Group on Health projects that 61 percent of large employers will offer health savings account plans in 2011. As one of the leading providers of health savings accounts, Wells Fargo & Company has made product enhancements for both customers and employers.
Customer can now make free withdrawals at more than 12,000 Wells Fargo and Wachovia ATMs nationwide. They can make deposits, withdrawals, and transfers at all Wells Fargo banking stores. In addition, Wells Fargo has increased its mutual fund choices and provides more long-term options. The updated Wells Fargo Visa(R) HSA debit card is now accepted by all merchants that accept Visa debit cards.
Employers can benefit from improved contribution options, such as ACH direct contributions. They also have secure online access to new Census, contribution, and enrollment reports. Wells Fargo has also expanded its library of employer educational materials and offers full-service support for annual enrollment.
As a Wells Fargo customer, Community Health Partnership, Inc. of Eau Claire, Wisconsin investigated the health savings account option. Its Benefits Administrator, Patricia McCown, says, "We did our homework and found that a high deductible health plan combined with an HSA program could help us control costs." She adds that, "Wells Fargo's HSA program stood out because of its cost efficiency, strong customer support and ease of administration."
Posted by Wiley Long at 10:42 AM | Comments (0)
November 02, 2010
Health Savings Accounts: How to Beat the Tax-savings Deadline
December 1 is the deadline for securing substantial savings on your current year taxes. If you have a health savings account (HSA) by December 1, you can make a tax-deductible contribution, which may help you reduce your April 15 taxes by $1,900 or more. Because underwriting may take a few weeks, it’s safest to apply for an HSA plan as soon as possible.
You may contribute up to $2,900 as an individual, or up to $5,800 as a family. If you are over 55, you may make an additional contribution of up to $900. Contributions up to these limits are not subject to taxes. If you’re in a 28 percent tax bracket and you make a $5,800 contribution, your April 15 tax bill could be reduced by $1,624 or more when you add in savings on state income taxes.
In addition, premiums on HSA-qualified plans are usually much lower than conventional co-pay plans. The money you deposit into an HSA is tax deductible, and can directly lower your taxable income.
As an HSA owner, you can also build a tax-deferred medical retirement account. To avoid a lot of out-of-pocket expenses, HSA owners have been able to withdraw HSA funds tax-free to pay for medical bills. Any funds not used for health care grow with tax-deferred interest and qualified withdrawals are also tax-free.
To save time and effort, we can help you compare premiums and apply by the December 1 deadline. The lower premiums of the qualified HSA plans and your tax reduction could mean up to $4,000 or more in annual savings.
Posted by Wiley Long at 10:03 AM | Comments (0)