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June 28, 2011
Will Health Savings Account Plans Still Be Here In 2014?
According to America's Health Insurance Plans, enrollment in Health Savings Account (HSA) plans have increased by 14 percent this year. The numbers show that approximately 11.4 million people are using an HSA plan. People are combining their high-deductible health plan with an HSA to reduce their premiums by as much as 40 percent.
Is the Affordable Care Act, with more changes to come in 2014, going to change HSA plans? There were a couple of small changes that have already gone into effect, but no major changes are expected.
Under the Affordable Care Act, you now need a prescription from your doctor to be able to buy over-the-counter (OTC) medication using your HSA. The penalty for using HSA funds for expenses not allowed by law has increased, too. However, the HSA Alliance is working to ensure that Health Savings Accounts will still be a option for many years to come.
You can find out about all of the benefits of HSA plans, and get advance notice if any changes are coming right here on our website. We'll also send you more suggestions on how you can maximize your HSA savings each month if you decide to save with low premiums, lower taxes and tax-free savings.
Posted by Wiley Long at 08:20 AM | Comments (0)
June 25, 2011
A Health Savings Account Provision That You Should Know
By 2014, most U.S. citizens will be required to maintain minimum health insurance coverage. Possibly due to this, Health Savings Account (HSA) enrollment is continuing to grow in demand. However, there are minor provisions that you need to know about Health Savings Accounts that the Affordable Care Act addresses.
If you withdraw money from your HSA for non-qualified expenses before you are 65, you have to pay a penalty fee of 20 percent. In addition to increasing that penalty, the Affordable Care Act also removed non-prescription drugs from the list of health-related products you could buy with HSA funds. Your doctor may be willing to write you a prescription for some over-the-counter medications, though.
A Health Savings Account (HSA) can only be combined with a qualified high-deductible health plan. Deductibles for these plans start at $1,200 for individuals and at $2,400 for the family plans. Not all plans with deductibles in that range will work with an HSA, though. Be sure to confirm the plan you are interested in is qualified to let you open your own HSA before you apply.
To see whether an HSA will save you money, you can learn more about the choices available with the extensive online resources here on our website. As the leading online expert on how to save with Health Savings Accounts, we have suggestions on everything from how to choose an HSA administrator to how to get wholesale prices on health care. Just look into our "Save Money" page for ideas.
Posted by Wiley Long at 11:57 PM | Comments (0)
June 21, 2011
What Links Health Savings Accounts And High-deductible Plans?
If you want to take advantage of the benefits that Health Savings Accounts offer, you need to have a qualified high-deductible health plan. For singles, you need to have a deductible between $1,200 and $5,950. For those who have a family, your deductible should be between $2,400 and $11,900. Not every plan in that deductible range allows you to set up a Health Savings Account (HSA), though.
You can find plans that are eligible to work with an HSA here on our site. With the right plan, you can start funding your own HSA and earning tax-free interest. If you do need to buy health care that's not covered by your policy, you can with funds still without paying taxes on the money to pay for qualified health-related expenses for yourself, your partner or spouse, or your dependents.
Another good thing about having an HSA plan is that it allows you to take a tax deduction for your HSA contributions. If you don't need the money for health care, it will be rolled over to the next year and will keep growing with tax-free earnings until you reach retirement age. You can continue to use it for health care then, or withdraw funds to pay for anything at all and just pay taxes on it then like an IRA.
A Health Savings Account is a hot commodity now because you get a federal income tax deduction, and usually a state tax deduction, for money you contribute to it even if you take the standard deduction and don’t itemize deductions. On our website, you can learn more about setting up your HSA and how HSA plans can be your best tax tip ever.
Posted by Wiley Long at 08:05 AM | Comments (0)
June 17, 2011
Who Needs A Health Savings Account?
With the rising cost of health care, who wouldn’t want to cut down their health insurance premiums? That is why a lot of people are switching to high-deductible insurance plans and combining them with a Health Savings Account. The high-deductible insurance plans that are combined with an Health Savings Account typically cost less in monthly premiums than full-coverage plans. People with a health savings account have been able to reduce their premiums by as much as 40 percent, but that's not all an Health Savings Account can do.
A Health Savings Account (HSA) also lets investors save tax-free and withdraw to pay for health care without losing that tax-free advantage. You still don't need to pay taxes on funds taken from your HSA to pay for qualified health care expenses. In addition to interest-bearing savings accounts, you may also invest HSA money in bonds, mutual funds or stocks.
To be eligible to start an HSA, you need to have an insurance plan with a deductible of at least $1,150 for individual coverage or at least $2,300 for family coverage. Not all high-deductible plans let you open an HSA so be sure to get the right kind. Even though you have a high deductible on your plan, policies purchased after health care reform pay for preventive care completely. That means no co-pay, co-insurance or deductible.
To get all of these advantages, simply sign up for an HSA-compatible health insurance plan and choose a financial institution to administer your HSA. We have lots of valuable educational resources you can review to decide whether an HSA will work for you.
Posted by Wiley Long at 08:47 AM | Comments (0)
June 13, 2011
Health Savings Accounts Used By More U.S. Citizens
U.S. citizens are relying more on Health Savings Accounts, according to a new report from J.P. Morgan Treasury Services. Their Health Savings Account (HSA) Program Snapshot portrays usage patterns and trends.
J.P. Morgan manages more than 700,000 Health Savings Accounts with a combined total exceeding $1.1 billion. Their new report indicates that U.S. citizens are increasingly leveraging Health Savings Accounts to use pre-tax dollars for current medical expenses, as well as investing to pay for future health costs.
The 2010 report showed that the average Health Savings Account balance is $1,494 up seven percent from 2009. Average contributions were only slightly up from $1,816 in 2009 to $1,884 in 2010. Seventy-three percent of account holders contributed more than they spent per month in 2010. In 2009, that percentage was slightly lower at 68 percent.
With the average account holder age 43, they averaged spending $5 more from their Health Savings Account each month of 2010 as compared to 2009. The average annual Health Savings Account distribution was $1,377 in 2010 and $1,305 in 2009.
J.P. Morgan's Managing Director David Josephs said that: "J.P. Morgan has been administering Health Savings Accounts since their inception, and we are uniquely qualified to deliver insight into Health Savings Account account holder activity and behavior. We expect employers who are offering Health Savings Accounts for the first time, or those who already have programs in place, to use J.P. Morgan's Health Savings Account Program Snapshot as a benchmark for comparison as they review health plan options for the upcoming enrollment season."
Posted by Wiley Long at 12:27 PM | Comments (0)
June 08, 2011
How Can Health Savings Accounts Help Build Your Retirement Savings?
Compared to a flexible spending account, having a Health Savings Account or an HSA plan can help build your retirement fund and decrease your taxes. Much like a IRA, the money you place in your Health Savings Account grows fast with tax-free interest.
To juice up your retirement savings, try not to touch your HSA funds as much as possible. If you do need Health Savings Account for health care, you can withdraw funds and not even have to pay tax on what you take out as long as you use it for qualified medical expenses. That includes a long list of health-related things like going to the dentist or seeing an herbalist. You can use your HSA for health care for your spouse or kids, too.
One of the best things about having an HSA is that that unused funds roll over at yearend. You never lose the balance like you do with a flexible spending account. To set up an HSA, you'll need a certain kind of high-deductible health plan. These HSA plans must have a minimum deductible of $1,200 for self-only coverage or $2,400 for family coverage.
On our website, it's quick and easy to see rates for HSA-qualified insurance plans. Plus, you can read about how much you can save with an HSA plan. See how to start your own HSA today with our educational resources on selecting an insurance plan and an HSA administrator.
Posted by Wiley Long at 08:48 AM | Comments (0)
June 02, 2011
An HSA Can Be Just What Small Business Owners Need
Over the past six years, health insurance premiums have significantly risen by at least 87 percent. This is not only the problem of small business owners, but of all Americans who are paying for their health insurance every year. According to insurance companies, premiums are on the rise due to the constant increase of health care costs.
Such an increase is a major problem because business owners need to pass this burden on to employees. Sometimes, it may also mean dropping the benefit entirely. A Health Savings Account or HSA can just be what small business owners need to solve this problem.
Going with HSA insurance with a high deductible, brings down the cost of premiums. An HSA can help with out-of-pocket expenses for medical costs until the deductible is met. Your employer may even place contributions in your account. What’s good about having an HSA is that the money you place in it earns tax-free and unspent money is remains yours even if you leave the job. Health Savings Accounts can even reduce your taxes.
To have an HSA plan, you need to have a qualified high-deductible health plan. On our site, you can check out which plans you need to qualify for an HSA. Get an instant HSA insurance quote and compare different HSA plan options from different trusted companies.
Visit http://www.health--savings--accounts.com for more information on Health Savings Accounts and HSA Plans.
Posted by Wiley Long at 12:39 AM | Comments (0)