« Health Savings Accounts Protect In Numerous Ways | Main | How Health Savings Accounts Cut Taxes »
October 04, 2011
Health Savings Accounts Lower Out-Of-Pocket Costs
Like all high-deductible plans, those that are qualified to be combined with a Health Savings Account (HSA) now cover preventive health care. That's only true for plans purchased after health care reform, though.
HSA Plans are high-deductible policies combined with an HSA. Like other high-deductible plans, HSA Plans are often less expensive than co-pay plans. They could be a more affordable route for employees struggling to pay for rising rates on group coverage.
As of 2011, the maximum HSA contribution for individuals is $3,050 or $6,150 for families. Those who are at least 55 can make an additional annual contribution of $1,000. Contributions can be deducted from taxable income to reduce federal and usually state taxes. Only a handful states remain where HSA deposits can not be used as state tax deductions.
Any HSA contributions that are not needed for health care can grow with tax-free earnings. It may be wise to start with a relatively low deductible, and move to a higher deductible as your HSA balance grows. That way you won't get caught with a lot of out-of-pocket costs. To research what HSA Plans are available, just run instant quotes on our site.
Posted by Wiley Long at October 4, 2011 02:18 AM