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September 27, 2011
How HSA Plans Can Save You Money
With escalating health insurance costs, more and more consumers are looking for new ways to save on health care. More often than not, they don't realize how high-deductible health plans can mean significant savings.
High-deductible plans typically offer lower premiums than co-pay plans, and that's usually true for high-deductible plans that may be combined with a Health Savings Account (HSA). HSA Plans have other advantages, too.
All Health Savings Account contributions earns tax-free interest and funds may be invested in a traditional savings account, bonds, mutual funds or stocks. Contributions are also tax deductions that can reduce taxes on federal and usually state returns.
In order to set up an HSA, you need one of the high-deductible plans that is qualified to be combined with an HSA. To get an idea of the rates, you can compare HSA Plans, and other kinds of health insurance, with instant quotes on our site.
Posted by Wiley Long at 12:17 PM | Comments (0)
September 22, 2011
Are Health Savings Accounts Affected By Health Care Reform?
The Affordable Care Act has made major changes in health insurance and Health Savings Account Plans are no exemption. The trade association America’s Health Insurance Plans says that more than 11.4 million U.S. residents have HSA-eligible health insurance plans. That amounts to more than a 14-percent increase since last year.
Health care reform ended the option to buy over-the-counter drugs without a prescription using HSA funds. To do so now would result in a hefty 20-percent penalty on the withdrawal along with the need to pay taxes on that withdrawal.
On the other hand, health care reform mandates that high-deductible plans, including HSA-compatible plans, purchased after the Affordable Care Act became law must cover preventive services before the deductible has been met.
Little else has changed with respect to HSA Plans. HSA contributions can still be deducted from your taxable income. You don’t have to worry about the unspent money left in your HSA at the end of the year because it is carried over year after year. Once you turn 65, you can use HSA money for any purpose with no penalty, but you will have to pay taxes when you buy something other than qualified health care. You can learn about all the rules that apply to HSA Plans now with our online resources.
Learn more on our website at: http://www.health--savings--accounts.com
Posted by Wiley Long at 10:49 AM | Comments (0)
September 16, 2011
Are Health Savings Accounts Threatened By The Affordable Care Act?
Making consumers take a look at their health care expenditures is one way to curtail health care costs, and Health Savings Account (HSA)Plans can help.
Health Savings Accounts allow consumers to use a tax-advantaged account to pay for qualified medical expenses. A 2011 report by the trade association America’s Health Insurance Plans shows growing enthusiasm for Health Savings Accounts. But how has the Affordable Care Act impacted Health Savings Accounts?
One change to HSA Plans by the Affordable Care Act is that over-the-counter drugs like Advil can no longer be purchased with HSA funds without a prescription. This can be a big problem for people who need these low-cost options for long-term pain management.
An even bigger change in HSA Plans is that the high-deductible health plans that work with them must cover preventive care before the deductible has been met. That's only true for plans purchased after the Affordable Care Act became law, though. If you want to learn more about what HSA Plans offer now, our site offers news and educational resources about you Health Savings Account options.
Posted by Wiley Long at 08:47 AM | Comments (0)
September 13, 2011
Health Savings Accounts Remain Popular After Health Care Reform
Even after health care reform, Health Savings Accounts are increasing in popularity among small firms and families who need coverage in the individual plan market.
According to a recently released report from the trade association America’s Health Insurance Plans, the number of people with HSA Plans has nearly doubled in the past three years. This year, about 11.4 million U.S. residents can use the tax advantages of a Health Savings Account or an HSA.
Despite this popularity, the future of HSA Plans cannot be assumed. So far, the only change to HSA Plans has been that over-the-counter medicines can no longer be purchased with HSA funds, and the penalty for using HSA funds for something other than qualified health care has been doubled to 20 percent.
You can stay informed about all the changes that affect HSA Plans with the Health Savings Account news links on our website. We'll be tracking these changes, too.
Posted by Wiley Long at 10:55 AM | Comments (0)
September 09, 2011
Health Savings Accounts Meet Health Care Reform
America's Health Insurance Plans (AHIP) is a trade association interested in Health Savings Account (HSA) Plans. It doesn't track all high-deductible health plans, but it did survey 83 insurance companies this year. Despite increases in enrollment, HSA Plans were found to only account for about seven percent of health insurance coverage among people under 65.
Like other high-deductible health insurance plans, HSA Plans typically offer lower premiums than what is available with co-pay plans. Both pre-tax money and employer contributions are allowed, but there's no requirement to fund your HSA.
Contributions can be taken as deductions to reduce federal and state taxes in almost every state. That, along with tax-free earnings, make HSA Plans attractive.
The AHIP is tracking to see what effect new requirements that insurers spend a certain percentage of premiums on medical care or rebate policyholders will have on HSA Plan enrollment. To learn more about HSA Plans, please see our online resources.
Posted by Wiley Long at 10:31 AM | Comments (0)
September 04, 2011
Health Savings Accounts Grow To 11.4 Million
Over 11.4 million U.S. residents have a Health Savings Account (HSA) eligible insurance plans. According to America’s Health Insurance Plans (AHIP), that represents a more than 14-percent increase over last year.
HSA enrollment has almost doubled in the past three years and the biggest increase has been seen in large-group coverage. That rose by 26 percent resulting in more than 6.3 million being covered. The small-group market showed about 2.8 million were enrolled in HSA plans.
Likewise, HSA coverage grew by 15 percent in the individual market resulting in 2.4 million people being covered. The highest enrollment numbers were in California, which has 1,073,319 enrollees. Texas follows with 844,832 enrollees. Ohio also has 728,868 enrollees, Illinois has 690,509, Florida has 656,243 and Minnesota has 507,307.
By 2014, individual and small-group coverage markets will be required to meet minimum actuarial values for bronze, silver, gold, and platinum coverage levels.
The bronze level must have a minimum 60 percent actuarial value. That's the dollar value of the average expected benefits paid out by the plan.
The HHS Secretary is supposed to establish how actuarial values are determined. If employer HSA contributions were to be included in the actuarial value calculation, HSA plans would be more likely to meet the minimum requirement. That could help to continue the availability of HSA plans.
Our HSA instant quote system will show you qualified plans currently available.
Posted by Wiley Long at 10:30 AM | Comments (0)
September 01, 2011
Health Savings Accounts Are Becoming Mainstream Healthcare Options
HSA Bank's 2011 Consumer Benchmark Survey shows Health Savings Accounts are becoming mainstream healthcare options.
It turns out that people with HSA-compatible health plans have similar characteristics, like age, health status and income. Most (59.8 percent) were at least 45 years old.
Nearly 95 percent of all Health Savings Account owners described themselves as having average or better health. Less than half (42.1 percent) had annual incomes between $50,000 and $100,000.
People in this income range have the means to cover medical care until deductibles have been met. High-deductible plans purchased this year cover recommended preventive health care services without requiring policyholders meet the deductible. This may make HSA Plans more appealing to people in lower income ranges. For specific premium costs, run our instant quotes.
Posted by Wiley Long at 10:40 AM | Comments (0)