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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 June 25, 2011 11:57 PM