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November 27, 2011
Establish Your Health Savings Account By December 1
If you want lower than average health insurance premiums, get a high-deductible health plan that qualifies you to open a Health Savings Account. Not only do these plans have some of the lowest premiums available, but HSA plans also have much lower rate hikes than traditional health insurance policies.
HSA plans have the added advantage of helping you save on federal and state income taxes. There's no requirement to fund your HSA, but if you do, you can use the contributions to reduce your taxable income.
You have until April 17, 2012 to make these deposits, but you need an HSA plan by December 1 to reduce your 2011 taxes. Of course, you can do this for your 2012 taxes if you miss this deadline. Just be sure the health insurance plan you get is qualified to be combined with a Health Savings Account. The insurance company must report certain items to the IRS in order for you to get these tax advantages.
If you want to switch policies and your HSA is separate from the insurance company, you can get a different health plan without having to move your HSA. To learn more about managing HSA plans, see our extensive online resources.
Posted by Wiley Long at 09:59 AM | Comments (0)
November 24, 2011
Health Savings Accounts Encourage Cost Management
A survey from Mercer, an international HR firm, shows that the number of employers providing Health Savings Accounts has significantly increased. There's also been an increase in the number of HSA plans started by individuals.
Susan Connolly, a partner in Mercer’s Boston office, says that HSA plans are on the increase because the impact of increasing medical costs and overuse and misuse of health care services is taking a huge toll.
With a Health Savings Account, the high-deductible health plans keep premiums low, but also shift cost management from providers to patients. The insured is paying for some of their own health care and has to balance the cost versus the benefit received.
The insured also has more incentive to seek out less expensive services, such as wholesale imaging and lab work from companies that work directly with the public. To find out more about reducing health care costs with HSA Plans, listen to the expert debate and question and answer session during our next free teleseminar.
Posted by Wiley Long at 10:37 AM | Comments (0)
November 21, 2011
Health Savings Accounts Work For Acupuncture
Are you fond of alternative healing methods such as acupuncture to relieve stress and pain, or to promote health? The National Institutes of Health recently recognized the benefits of what has been referred to an "alternative" health care. However, your regular health insurance plans might not cover these treatments.
If you have a Health Savings Account (HSA), you can use your HSA dollars to pay for alternative medical treatments and you can take tax deductions for these expenses. HSA Plans combine high-deductible health insurance policies with tax-advantaged savings accounts.
The new high-deductible health plans that work with Health Savings Accounts cover regular preventive services before you've met the deductible. For example, flu shots, a yearly checkup, and identifying certain cancers, diabetes, high blood pressure are all covered. These plans still cost less than full-coverage policies known as co-pay plans.
Health Savings Accounts will change how we think of health insurance. If you want to learn more about what HSA Plans offer now, our site contains news and educational resources to help.
Posted by Wiley Long at 10:17 AM | Comments (0)
November 16, 2011
Health Savings Accounts Urged in Delaware
Retired health care executive Richard Cherrin says Delaware needs a "dramatic, bold, paradigm shift" in the way it handles health care with its poorest residents, and he says "the time to do it is now."
Explaining his plan at a meeting of the Commission on Medicaid Cost/Health Care Containment, which he chairs, Cherrin proposes a shift to "consumer-driven" Health Savings Accounts for Medicaid recipients.
Delaware state officials are seeking ways to escape the unsustainable trend that now has about 25 percent of Delawareans enrolled in Medicaid, thousands more expected in the next year and the cost of that care reaching $1.5 billion for fiscal year 2012.
Cherrin said the average expense of Medicaid -- in state and federal money -- is about $7,000 per person in Delaware. If each got 1/2 that amount to spend on a menu of Medicaid-covered benefits, with incentives to have something left at the end of the year, Cherrin believes the money would be targeted more wisely and efficiently. The use of wasteful tests and procedures would be reduced, he said.
Those who have additional needs would be covered in traditional Medicaid fashion, he said. But those with leftover money would have that money applied to their Health Savings Accounts -- in a lump sum at the end of the year, rolled into similar coverage for the next year or invested in U.S. government securities for use in retirement.
Cherrin suggested a 12-month pilot program to test the Health Savings Account proposal.
"Health Savings Accounts bring the issue of competition into the market -- and there is no competition in the health care system now," said Cherrin, who was a senior vice president at Christiana Care and chief executive officer of the Visiting Nurse Association.
Commission members expressed interest in the idea while raising several concerns. A federal waiver could take two years to get, the plan would need to be adaptable to individual needs and some questioned whether the plan would raise costs instead.
Michael Cannon, director of health policy studies at the Cato Institute, predicts it would do that. He believes the end-of-year incentive would draw many more into the system -- those who are eligible for Medicaid but not enrolled in it.
"Providing the right amount of assistance is a difficult balancing act," he said. "If you provide too much, you encourage people not to take care of themselves and you will be inducing people to become dependent on that assistance. ... It would not be a savings to Delaware -- and Delaware would be pushing more than half that increased cost to taxpayers in other states.
"And personally, as a taxpayer in another state, I'm offended."
The commission has a Dec. 15 deadline to submit its recommendations to the governor and legislators. It meets again Nov. 30.
Posted by Wiley Long at 09:50 AM | Comments (0)
November 13, 2011
How Health Savings Accounts Work With Medicare
Once you are enrolled in Medicare, you are no longer eligible to contribute to your Health Savings Account, but that doesn't mean it's any less valuable.
If you plan to continue working and remain on your employer’s health plan after you are eligible for Medicare, you can continue to make Health Savings Account contributions until you enroll in Medicare. Even Medicare Part A benefits, which are typically free, will disqualify you from being able to make Health Savings Account contributions though.
Once you are 65, you’re free to spend Health Savings Account (HSA) money as you see fit. You can continue to withdraw funds tax free to pay for eligible health care, and that includes Medicare co-pays and deductibles. You can also use HSA money for other purposes with no HSA penalty, but you will have to pay taxes on the withdrawal.
If your spouse enrolls in Medicare before you and is not covered by your health insurance, you can still pay for your spouse’s health care with HSA funds. You can also spend your HSA on health care for your dependents, even if they are not covered by your health insurance. For more information on how to use HSA plans, please see our HSA Information page.
Posted by Wiley Long at 10:30 AM | Comments (0)
November 10, 2011
Health Savings Accounts Offered By Bellco Credit Union
With millions of consumers worried about the rising cost of health care and how medical bills can make a huge impact on their wallet, Bellco Credit Union announced that they will offer Health Savings Account services to help consumers manage health care costs.
A Health Savings Account (HSA) provides a smart way to save for both day-to-day and future medical expenses. If you are in a high tax bracket, you can definitely benefit from an HSA plan. You can lower your annual federal taxes and even your state income taxes in almost any state.
With HSA Plans, you don't even need to itemize deductions because your HSA contributions are considered "above the line" deductions and you can get a deduction for your entire HSA contribution. If you don't need it for health care, it will earn tax-free interest and grow like an IRA.
You can use your HSA balance to pay for qualified medical expenses, ranging from acupuncture to your childrens' dental care. You also have a range of options so you can invest your HSA funds in with as little or as much risk as you're comfortable. Investments range from interest-bearing savings accounts to stocks.
HSA plans have deductibles starting at $1,200 for individuals or $2,400 for families. If you just want to give this system a try, start with a deductible that you could easily manage if necessary, and later switch to a plan with a higher deductible after your HSA balance has grown. Here on our website, it's quick and easy to see rates for HSA insurance with different deductibles so you can conveniently shop whenever you're thinking about increasing the deductible.
Posted by Wiley Long at 10:57 AM | Comments (0)
November 07, 2011
Health Savings Accounts Are Not In The Future For Texas State Workers
In Texas, a House Bill was proposed to offer Health Savings Accounts to state workers. However, despite the growing popularity of these tax-advantaged, low-cost Health Savings Account plans, political opposition is keeping HSA Plans out of reach for state employees.
Health Savings Accounts are very popular in the insurance market today for tax breaks and lower premiums. An HSA allows you to make many expenses such as acupuncture, co-pays, chiropractor services, dental services, homeopathy, prescriptions, etc., tax deductible.
The advantages of an Health Savings Account are only available to those who have a qualified high-deductible health plan, but this type of insurance is typically less expensive than full coverage plans. The money saved on premiums can be invested in an HSA to cover expenses until the deductible is met.
Free question-and-answer teleseminars about Health Savings Accounts are regularly available through our website. You can also find extensive online information here about both Health Savings Accounts and the high-deductible health plans that work with them.
Posted by Wiley Long at 10:56 AM | Comments (0)
November 04, 2011
Health Savings Account Benefits Available Until Dec. 1
There's still time to lower your 2011 income taxes, but you'll need a health insurance plan that's qualified to work with a Health Savings Account (HSA) by December 1. Health Savings Accounts are the only plan that gives you a tax deduction when you put the money in, tax-deferred earnings, and tax-free withdrawal to pay for qualified medical costs.
The high-deductible health insurance plans that work with an HSA are some of the least expensive forms of health insurance. Once you have an HSA health insurance plan is place, you can start your Health Savings Account with just a small deposit.
You'll be allowed to make deposits later and then reimburse yourself retroactively for health care costs back to the date you started your Health Savings Account.
You have until April 15, 2012 to make your 2011 HSA contribution. If you start an individual HSA, you can deposit up to $3,050 in your HSA and take the full amount as a deduction without itemizing deductions. For family HSA plans, you can contribute up to $6,150. Plus, at age 55, you can start to contribute an additional extra $1,000 each year.
Your HSA contributions can grow tax-free to build a retirement account or you can withdrawn funds to pay for health care for you and your family, even if family members are not on your high-deductible health plan. A comprehensive list of qualified HSA medical expenses that may be purchased with HSA funds is available here on our site.
Posted by Wiley Long at 11:32 AM | Comments (0)
November 01, 2011
Health Savings Account Contribution Limits For 2012
The IRS has released contribution and other limits for Health Savings Accounts for 2012. Contributions increased slightly. For individual Health Savings Account (HSA) plans, it will be $50 higher at $3,100. Family HSA plans will see a $100 increase to $6,250. The catch-up $1,000 contribution for those 55 or older remains the same.
To get the tax deduction for the current tax year, you must have an HSA-qualified high-deductible health plan by December 1. Once you have your HSA plan in place, you're free to open an HSA, but there are no contribution requirements.
The sooner you open the Health Savings Account, the earlier you'll be able to reimburse yourself for health care. You can retroactively pay yourself back to the date the HSA was opened with money you contribute at a more convenient time.
Whether you're planning to start your HSA this year or next year, you'll need a plan with an annual deductible of at least $1,200 for individuals or $2,400 for families. HSA plans have out-of-pocket maximums of $5,950 for self coverage or $11,900 for family coverage this year and $6,050 / $12,100 next year. To learn more, take advantage of our free HSA Webinar.
Posted by Wiley Long at 10:31 AM | Comments (0)