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February 24, 2011
What Can Health Savings Accounts Do For Entrepreneurs?
When you start your own business, you may find that individual health insurance is among your biggest expenses. A Health Savings Account (HSA) can be a great asset for both the self-employed and small business owners.
If buying an individual health insurance plan is similar to renting, then investing in an HSA plan can be thought of as similar to investing in a home, which allows you to build equity. While a Health Savings Account can only work with a high-deductible policy, that's the type of health insurance that has low premiums.
Rather than send high premiums to an insurer every month, you can invest the money you save on premiums in a tax-advantaged Health Savings Account. As long as your health remains good, you'll have few medical expenses and won't need to use your HSA funds for your deductible.
If you do have health care expenses, you can withdraw pre-tax deposits from your HSA to cover them. You can also pay for many expenses not covered by standard health plans, such out-of-pocket costs for dental, prescriptions or vision services.
As long as you can leave funds in your HSA, the money remains tax-deferred because the balance will automatically roll over at the end of the year. When you reach retirement age, you're free to withdraw the money for uses other than health care similar to IRAs. Learn more about the tax advantages of an HSA and how to set up your own at: http://www.health--savings--accounts.com
Posted by Wiley Long at 01:21 AM | Comments (0)
February 21, 2011
Learn How Health Savings Accounts Work
Most people become interested in a Health Savings Account (HSA) because they want to lower their insurance premiums. The high-deductible insurance plans that are combined with an HSA typically cost less in monthly premiums than full coverage insurance plans. An HSA also lets investors save tax-free and withdraw to pay for health care without losing that tax-free advantage.
At the end of 2010, the deductibles on plans eligible to permit opening a Health Savings Account started at $1,150 for individuals and at $2,300 for a family. Even before the deductible is met, plans must cover preventive care, including wellness exams and vaccinations.
Out-of-pocket costs for individuals with HSA plans are limited to $5,800. That limit is $11,600 for family plans. Both individuals and their employers can make deposits into the same HSA as long as contributions don't exceed the maximum amount allowed. That limit is is $3,050 for individual accounts or $6,150 for family plans.
HSA funds are completely independent of employment. If an individual leaves a job, he may discontinue his group coverage or purchase COBRA insurance to maintain the same high-deductible coverage. If he gets another high-deductible plan via a new employer or an individual plan, he is still eligibile for HSA tax benefits. Even if he has no health insurance, the HSA funds are his to keep although the tax benefits of the HSA will be lost. Learn more about how Health Savings Accounts work on our website.
Posted by Wiley Long at 10:13 AM | Comments (0)
February 18, 2011
Health Savings Accounts Reduce Business Costs
If you’re a business owner, you should investigate how a health savings account can save you money even if you don't provide health insurance for your employees or you are the sole employee. You can typically get lower rates on a group plan than on an individual plan and group plans tend to have better coverage. Add a health savings account (HSA), and now you can reduce your and/or your employee's income tax, too.
Your employees will need to start their own Health Savings Account, but high-deductible health insurance providers can recommend financial institutions that offer health savings accounts.
HSA contributions are tax deductible and the maximum allowed contribution depends on the employee's age and whether he sets up a family or individual plan.
Investing in an HSA helps employees and the self-employed get health care coverage at an affordable rate. It also allows them to set surplus money aside to cover health care costs tax free and it reduces tax liabilities. An HSA can benefit both employees and business owners. See more details about HSA benefits on our website.
Posted by Wiley Long at 04:23 AM | Comments (0)
February 15, 2011
How To Choose A Health Savings Account Provider
Health savings accounts can help to curb premiums while offering a tax break, so how can consumers find a provider for their health savings account (HSA)? Banks and other financial institutions, along with health insurance providers, can show HSA owners a variety of options, but the HSA owners needs to determine priorities.
When looking for institutions that offer health savings accounts, compare monthly maintenance fees, set-up fees and transaction fees. It's just as important to compare the interest rate earned on account balances and your options to access funds.
Will you have online access to your account and statements? What about online bill pay? Another service that can be very helpful is having a debit card. Balance the services you want from your health savings account provider against fees on the account to narrow down your choices.
Once you have your HSA set up, remember to be careful to only use it for qualified health care expenses. An HSA allows you to make many expenses such as acupuncture, co-pays, chiropractor services, dental services, homeopathy, prescriptions and many other health care expenses tax deductible. With an HSA, you can spend less on health insurance premiums and taxes. Our website provides in depth information about how to find an HSA administrator and getting the greatest benefit from your HSA.
Posted by Wiley Long at 02:23 AM | Comments (0)
February 10, 2011
New Health Savings Accounts From Blue Cross of Northeastern Pennsylvania
Blue Cross of Northeastern Pennsylvania has completely revamped Health Savings Accounts to provide members greater flexibility and increased control to manage health care costs. This line of Health Savings Accounts is now the most comprehensive option available in Northeastern and North Central Pennsylvania.
A Health Savings Account (HSA), like a flexible spending account (FSA) and a health reimbursement arrangement (HRA), offers a way to use pre-tax dollars to pay for eligible health care costs, including coinsurance, co-pays and deductibles. ”By improving and expanding our health care account options to include Health Savings Accounts, we are empowering our members to have a greater say in managing their health care spending and to make better, more informed decisions that impact both their physical and financial well-being,” says Paul Holdren, Senior Vice President of Sales and Product Development at Blue Cross of Northeastern Pennsylvania.
To reap the full benefit of the power of HSA insurance, Blue Cross has selected HealthEquity to provide an easy-to-use online portal with tools and information for members, along with trained financial specialists who are available on a 24/7 basis. Holdren notes that,“Members will be able to view their account online anytime and see how their health care account dollars are being accumulated and spent.” HealthEquity has even launched an application for web-enabled Android and iPhone mobile phones so members may securely access their account remotely.
All of these new tools enable members to save for future health care because HSA funds that are not needed continue to roll over year-after-year and may be used during retirement. Both members and employers can benefit from the significant tax benefits and tax advantages available through an HSA. Contributions are made pre-tax and withdrawals are not subject to federal, and often state, taxes as long as they are used for a qualified health care expenses. Keep up-to-date on the tools available to save on health care expenses by visiting http://www.health--savings--accounts.com.
Posted by Wiley Long at 10:02 AM | Comments (0)
February 07, 2011
The Changing Health Savings Account Landscape
President Obama acknowledged health savings accounts by including them as one of his policy proposals. Health savings account (HSA) plans are associated with the lower premiums of high-deductible health insurance policies.
The attraction of low premiums is integral to the increase of employers switching to HSA plans for their employees. According to Tower Watson and the National Business Group on Health's 2010 survey, 83 percent of businesses have already or are planning to change the health care they offer.
Employers are fighting the sky-rocketing cost of health care in the U.S., which is growing by approximately double the rate of inflation. The 2010 survey found that 61 percent of companies contacted were interesed in consumer-driven health plans (CDHPs), such as low-premium, high-deductible health insurance plans that are qualified to work with an HSA.
According to the CEO of PayFlex Robert Natt,“Health Savings Accounts have the potential to transform healthcare like managed care did in the 1980s. As the largest third-party administrator of Health Savings Accounts today, PayFlex’s vision is to bring innovative products and services to the market—with the ultimate objective of increasing engagement and driving down costs.” More information about how HSA plans work is available on our website.
Posted by Wiley Long at 02:04 AM | Comments (0)
February 02, 2011
Health Savings Accounts Offer New Nationwide Broker Program
As one of the largest administrators of Health Savings Accounts, J.P. Morgan Treasury Services launched an HSA broker program. It will provide brokers and third-party HSA administrators with dedicated service and support.
That includes access to administrative, education, marketing and sales tools to aide brokers. J.P. Morgan also provides detailed cost estimates and statistical data along with updates regarding how HSA regulations are changing.
Small to mid-size businesses can set up health savings account programs within just five days with J.P. Morgan's assistance. It also offers more customizable plans for larger companies that deal with more complex and extensive benefit situations.
One of the brokers working with J.P. Morgan during the pilot phase of this program is the Denver-based Gundzik & Associates, Inc. They've offered clients employee and executive benefits products since 1973. Michael J. Gundzik says, "Teaming with J.P. Morgan enables me to offer a quality brand to clients and the ability to pair the HSA with High Deductible Health Plans from any insurance company. My clients don't have to switch HSA administrators just because they switch HSA insurance plans. I can count on J.P. Morgan's broker service unit to answer any questions I have on enrollment or funding, and help get my clients up and running in just a few days."
Posted by Wiley Long at 10:58 AM | Comments (0)