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March 28, 2011
Learn Facts About Health Savings Accounts That You Should Know
Health Savings Accounts have been gaining popularity with consumers ever since they started way back in 2004. Once you have a high-deductible health plan (HDHP) that is qualified to work with a Health Savings Account (HSA), you are eligible to open an HSA. HSA plans allow you to deposit tax-deductible funds into an HSA that you can use to cover qualified medical costs until your deductible has been met. If you were not able to use the contributions for that year, the money would be carried over to the next year and it would continue to grow with tax-free earnings.
HSA plans allow individuals to be more responsible when it comes to health care decisions. In addition, consumers are getting a Health Savings Account because it helps reduce income taxes. Contributions placed in your HSA are tax-deferred and withdrawals are tax-free when used to pay for qualified medical bills.
However, HSA plans are not available for everyone because insurers are still allowed to decline applications from people who have pre-existing medical conditions. Independent health insurance brokers generally are familiar with the underwriting practices of various insurers and may be able to suggest which companies have less strict underwriting policies. That may help you find coverage, but you might still have exclusions on your coverage.
You will still have rate increases on your premiums even if you have an HSA plan. With underwriting evaluating the potential cost to pay for your heath care, it's much easier to change health insurance while your health is good. Keep your HSA administrator separate from your insurance provider to make that even easier.
Posted by Wiley Long at March 28, 2011 09:23 AM