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December 30, 2010
Health Savings Accounts Emphasize Personal Ownership
Employers emphasize that combining a Health Savings Account (HSA) with a high-deductible health plan does more than help employers save on health care for employees. An HSA is a tool for retirement planning.
In Central Ohio, business owners want more people to utilize HSA Plans. These special forms of savings accounts can prevent some people from being forced to delay their retirement, according to Jay Savan. He's a St. Louis-based health consultant with the benefits firm of Towers Watson. Savan says, "We have trained people to view health care in 12-month increments. Our job is to turn renters into owners."
It's estimated that about 11.2 million people are already covered by account-based health plans. In addition, approximately 60 percent of large employers already offer or are planning to offer HSA Plans in the near future.
With an HSA, both the employer and employee may deposit funds in the HSA that can be withdrawn to cover qualified health care expenses. The remaining balance rolls over year after year and belongs to employees even when they leave the job.
Posted by Wiley Long at 10:34 AM | Comments (0)
December 27, 2010
Health Savings Accounts: Tools For Saving On Health Care
The need to save for health care has never been more urgent. Perhaps, that's why Health Savings Accounts are growing both in number of owners and in amounts deposited.
A Health Savings Account (an HSA)is a tool that people can use to save for future health care expenses. Even after retirement, the funds can still be utilized to pay for qualified health care expenses on a tax-free basis.
The advantages of an HSA are only available to those with a qualified high-deductible health plan (HDHP). This type of insurance is typically less expensive than full coverage plans, and the money saved on premiums can be invested in an HSA to cover expenses until the deductible is met.
HSA contributions remain the property of the account owner whether he leaves the job or retires. HSA owners also control how funds are invested to try to maximize their rate of return. Cash-back reward savings programs, money market accounts and certificates of deposit are among their options.
Posted by Wiley Long at 11:37 AM | Comments (0)
December 21, 2010
PayFlex Offers Comprehensive Health Savings Account Support
A leading administrator for employee benefit programs is expanding its support for health savings accounts and offering a new paradigm. PayFlex offers a comprehensive solution by providing all of the technologies and services that are key to administering a health savings account (HSA).
PayFlex will extend its Health Savings Account offering to any financial institution. That enables employers and HSA owners to choose their financial institution rather than have to use a designated custodian. Banks and HSA health plans may also select the PayFlex HSA to take advantage of PayFlex's reconciliation expertise.
Dubbed a "custodian-agnostic" product, this new model offers greater flexibility and control to both employers and insurers. The new PayFlex HSA platform can provide consumers tax-advantaged HSA plans that may be combined with qualified high-deductible health insurance.
PayFlex's comprehensive support includes an account investment platform, account reconciliation, call center support, debit cards, an easy-to-use Web interface, an integrated reimbursement payment solution, and its IRS compliance expertise. It has also added a new payments platform to process bill payments and will send out individual statements. For further information about HSA plans and HSA Administrators, just visit out website at: http://www.health--savings--accounts.com/
Posted by Wiley Long at 09:17 AM | Comments (0)
December 18, 2010
Health Savings Accounts Can Help Small Companies
With the outrageous cost of health care in the U.S., every business owner is trying to cut costs. This is especially true for small business owners. Health Savings Accounts can provide a viable option to make health care more affordable.
A Health Savings Account (HSA) is a tax-exempt savings account, which can be used to pay for qualified health care expenses. These accounts can only be used with certain high-deductible health insurance policies.
Covered individuals and families may reduce their federal, and often their state, tax bills with tax-deductible HSA contributions. Unlike IRAs, there are no limitations for high-income earners.
Health Savings Accounts are owned by the employee, so the funds remain with the employee when they leave a company for any reason. These accounts grow with tax-free interest and there are no penalties for withdrawals when used for qualified health care expenses.
The benefits for small business owners can be substantial because premiums are typically less for high-deductible coverage, and employees absorb management duties to reduce company paperwork. The tax savings that are associated with Health Savings Accounts may be the biggest benefit for small business owners. Find out more about the advantages of health savings accounts at http://www.health--savings--accounts.com/
Posted by Wiley Long at 10:24 AM | Comments (0)
December 15, 2010
HSA Plans Are A Great Way To Save On Health Care
One big benefit with a health savings account (HSA) is that you own it completely. If you leave your job, all of the funds are yours to keep, and you never have to worry about not spending the whole balance before the year ends.
Unlike with flexible spending accounts, HSA funds roll over to the next year, and continue to earn tax-free interest. The HSA deposits you make are considered pre-tax contributions, which is a great money saver.
Use the balance in your health savings account any time you want for eligible health care expenses that your health insurance doesn't cover, including co-pays and lab tests.
You can access HSA funds with a debit card, which can be used anywhere that Visa and MasterCard are accepted. You'll also have checks on your HSA to use just like a checking account.
If you prefer, you may pay for health care services directly and reimburse yourself from your HSA. The type of access you have may depend on your employer, but you can set up an HSA even if you're unemployed. So if your employer offers HSA Plans as an option, seriously consider how it can save you a great deal of money throughout the year!
Posted by Wiley Long at 11:17 AM | Comments (0)
December 12, 2010
Wisconsin to Dump State Tax on Health Savings Accounts
Republican Gov.-elect Scott Walker plans to remove Wisconsin's tax on health savings accounts. He says this could save taxpayers from $4 million to $8 million, help many small businesses and attract more employers to Wisconsin.
Wisconsin is one of only four states that tax health savings accounts, so there's a lot of precedent for ending the tax. With a health savings account (HSA), people can make tax-deductible contributions and withdraw the funds tax-free to cover qualified medical expenses.
HSA Plans encourage saving to cover future health care, and make certain services that may not be covered by standard policies, such as acupuncture, tax deductible.
Since health savings accounts only work with high-deductible health insurance plans, there is also concern that if healthy people switch from standard insurance plans to health savings accounts, premiums will go up for people who really need the full-coverage of low-deductible plans.
Walker says that health savings accounts help avoid the possibility of rationing health care, but he admits, "they're not going to solve every bit of the health care crisis," [but] "they're a key part of the solution." To learn more about the health savings account alternative, visit: http://www.health--savings--accounts.com
Posted by Wiley Long at 11:28 AM | Comments (0)
December 09, 2010
How You Can Benefit From Having Your Own Health Savings Accounts
A health savings account (HSA) is basically a tax-free way to save. You may be thinking that's what an IRA is, but an HSA is specifically used for healthcare expenses. Paying for healthcare through your HSA makes these costs tax-deductible for self-employed account owners.
Any funds you don't need for healthcare continue to grow with tax-free interest until you turn 65. Then you may withdraw funds to use on whatever you like. Until you are 65, you'll face penalties if you use HSA funds for anything other than qualified healthcare.
An HSA is combined with a qualified high-deductible health insurance policy that covers large medical bills. You use your HSA for healthcare expenses until that deductible has been met.
If you are under age 65 and have a qualified HSA insurance plan, you can open an HSA. You will not be considered eligible by the insurance company if you are covered by another health insurance policy that is not a qualified high deductible plan, though.
To learn more about the benefits of an HSA, please visit www.health--savings--accounts.com
Posted by Wiley Long at 10:33 AM | Comments (0)
December 06, 2010
How Health Savings Accounts Contributions Work
You are allowed to contribute one-twelfth of the total permitted annual contribution for any complete month that you are covered by a high-deductible health insurance policy. In 2010 and 2011, the annual maximum contribution for an individual is $3,050. Health Savings Account owners age 55 or older may add $1,000 to the maximum each year as a catch-up contribution. The maximum Health Savings Account contribution for those with family coverage is $6,150.
If you make any Health Savings Account contributions in excess of this rule during a tax year, you will be subject to a testing period.
This testing period requires you to maintain your high-deductible health insurance though the entire month of December in the current tax year and throughout 12 months in the next tax year. If you fail to satisfy the testing period, the additional contributions made under this exception become taxable and subject to a penalty tax.
In 2011, the maximum out-of-pocket Health Savings Account expense (including deductibles) that employees can be required to pay will rise to $5,950 for single coverage or $11,900 for family coverage.
HSA plans that are qualified to work with an HSA must have deductibles of at least $1,200 for individual coverage or $2,400 for family coverage.
Once your HSA is set up, both you and your employer can contribute. Your HSA contributions may be deducted on your tax return. If you contribute through your employer's pre-tax program, your contributions must be shown on your W-2 in box 12, along with your employer's contributions.
Posted by Wiley Long at 10:31 AM | Comments (0)
December 01, 2010
Health Savings Account Bill Killed By California Unions
SB 1262, by Senator Sam Aanestad (R-Grass Valley), could have cut California's spending for health care retirement with tax-free Health Savings Accounts (HSA). It would have required the California Public Employees' Retirement System to offer lower cost HSA Plans to state employees.
SB 1262 died as state labor unions opposed the bill in committee hearings, including the Service Employees International Union, California Labor Federation and the California School Employees Association.
Senator Aanestad cannot understand opposition to this HSA plan that is already offered in 46 other states. He says that his plan is based upon the HSA policy that is offered in Indiana, which added an HSA Plan option for state employees in 2005.
By 2010, more than 70 percent of Indiana's 30,000 state workers had selected the HSA option. A study by Mercer Consulting (an independent health care consulting firm) indicated that Indiana's total state employee health care costs have been cut by 11 percent.
Aanestad maintains that, "This Legislature must start making tough decisions when it comes to controlling unfunded state retirement costs, which are approaching $500 billion."
See what options are available to set up your own HSA Plans in California on our website.
Posted by Wiley Long at 11:05 AM | Comments (0)