« Establish Your Health Savings Account By December 1 | Main | Health Savings Account Versus Retirement Account »
December 01, 2011
Difference Between Health Savings Accounts And A 501(C)3
If you are wondering if Health Savings Accounts are the same as 501(C)3 corporations, the answer is no. A 501(C)3 corporation is a tax-exempt organization formed for educational or charitable activities. Health Savings Accounts, on the other hand, are simply a tax-advantaged way of saving money when it comes to paying for medical bills.
A Health Savings Account also helps reduce your income taxes - both federal and almost always state taxes. HSA contributions tax-deferred and withdrawals are tax-free when used to pay for qualified medical expenses.
A Health Saving Account must be combined with a qualified high-deductible health plan. These deductibles start at $1,200 for individual coverage and $2,400 for family coverage.
HSA plans do have underwriting policies, so pre-existing health conditions might cause your application to be denied. Our independent agents can suggest which companies have less strict underwriting policies to help you find coverage.
Rates for HSA-qualified plans are significantly lower than standard co-pay plan premiums. In addition, premiums have been rising only about half as fast as other kinds of health insurance.
Maintaining your health will make it easier for you to switch plans if you do see a rate increase. Our site offers instant quotes to help you compare prices from the major insurance companies offering HSA plans.
Posted by Wiley Long at December 1, 2011 03:00 AM