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January 30, 2012
Have Health Savings Accounts Changed With Health Care Reform?
Since the implementation of the Affordable Care Act, we have seen numerous changes in the way we receive health care. One of the health care options affected by this law has been the high-deductible health insurance plans that allow you to open a Health Savings Account (HSA).
Low-cost HSA plans, like all plans with deductibles, must now cover preventive health care before policyholders have spent enough on their own health care to meet the plan's deductible.
Since preventive health care is much more affordable than last-ditch medical intervention, not to mention being much more humane, addressing health problems when they first appear has the potential for huge savings.
Will health insurance companies be willing to cover more health care if it saves them money in long-term medical claims? That remains to be seen. Insurance companies have been known to deny claims, which was another way to avoid long-term claims when policyholders didn’t pay to doctors for preventive care that wasn’t covered.
Another aspect of the reform law also affects HSA and non-HSA plans alike. Insurance companies offering individual health insurance policies are now required to spend at least 80 percent of the premiums they are paid for those plans on health care for policyholders. The remaining 20 percent will be left for salaries, advertising, fraud prevention, profit, etc.
Will covering more health care result in higher premiums? The demand for HSA plans has not declined since the health care reform became law. For most examples, we can look at other developed nations, but HSA plans are unique to the U.S. So far, the popularity of HSA plans has gone unchecked. That demand may play a big part in how insurers view these plans in the future and how many are ready to provide them.
Posted by Wiley Long at 12:29 PM | Comments (0)
January 26, 2012
Great Health Savings Account Rewards
A high-deductible plan combined with a Health Savings Account (HSA) is a tax-advantaged way to pay for most medical expenses. HSA plans allow your savings to grow with tax-free earnings.
Plus, HSA money is yours to keep in contrast to flexible spending accounts. Those funds are only available until the end of the year.
There's even a program called "My HSA Rewards" that lets you earn cash-back from purchases to build your HSA balance. That's great at Christmas time, but it works throughout the year.
"My HSA Rewards" is a special program that can add real cash to your HSA balance from qualified purchases. When you shop through major retailers like Barnes & Noble, Target, Starbucks, Netflix, and others, you automatically earn cash rewards ranging from 0.5 percent to 25 percent.
As the rewards accumulate, you can transfer the money to your HSA when the amount totals $50 or more. My HSA Rewards is available through our website so you can start earning rewards as soon as possible.
Check our Additional Benefits page for a complete listing money saving options.
Posted by Wiley Long at 02:29 AM | Comments (0)
January 22, 2012
Six Amazing Health Savings Account Facts
Did you know that you might be missing out some major benefits if you currently have a high-deductible plan without opening a Health Savings Account (HSA)? There are six great things about Health Savings Accounts that you should know.
First, they are very easy to use. Some financial institutions offer debt cards with a HSA, and credit cards attached to a HSA may be available soon.
Second, HSA funds are yours to keep.
Unlike Flexible Spending Accounts, the money in your HSA rolls over every year. You don't have to spend the entire balance and the remainder can grow into a retirement fund.
There is a limit to how much you can deposit into your Health Savings Account each year, though. For 2012, it’s $3,100 if you’re single and $6,250 if you have dependents. Exceeding these limits could get you an IRS penalty.
Next, HSA plans give you tax advantages. The contribution you place in your account can be deducted from your total taxable income. Aside from that, the money you withdraw for qualified medical expenses is also tax-free.
Using your HSA funds for other purposes could mean incurring a 20-percent tax penalty. However, if you wait until you reach 65, you can use the funds any way you like. You'll still have to pay income tax on money used for nonmedical expenses, but there won't be any penalties.
Fourth, Health Savings Accounts are very flexible. You can use them for doctor visits, dental and vision services, special treatments, surgery, and a lot more. You can even use your HSA funds to buy over-the-counter medications as long as you get a prescription from your doctor.
Fifth, HSA plans are portable. The money is yours to keep even if you change jobs, retire, or lose your job. Just remember that you won't be able to make any further deposits after age 65. So be sure to build up the maximum amount before then.
Last, they are profitable. If you start an HSA early and make the maximum deposits each year, you could build up quite a nest egg by the time you reach 65. And, because some of the money you deposit can be invested in other ways, health savings accounts offer the potential for building wealth.
Posted by Wiley Long at 09:39 AM | Comments (0)
January 18, 2012
Why Health Savings Accounts Are On The Rise
We have seen a constant increase in the number of Health Savings Accounts because they create a win-win situation for employees and employers. Two studies were conducted to show you why enrollment in HSA plans continues to grow.
Buck Consultants conducted a survey that revealed that Health Savings Accounts are not only saving employers and consumers money, but are also helping employees (and retirees) make better decisions about their healthcare. Employers said that the cost of providing HSA high-deductible health plans is considerably less than that of providing a standard health plan.
In a similar study, Mercer reported that due to the rising cost of healthcare plans per employee, employers are trying to keep costs down by offering HSA plans and Health Reimbursement Arrangements. Because of the high deductible, HSA plans cost around 20 percent less per employee than other options.
You can open an HSA as long as you have a qualified high-deductible health plan. You won't have a deductible on recommended preventive care services, like annual exams, vaccinations, checking for high blood pressure, etc. If you need other types of health care that aren't covered, you can use funds from your HSA to pay for it.
Experts recommend starting with a deductible you could cover until you have built up your Health Savings Account. With more HSA funds as a backup, you can safely move to health insurance with a higher deductible, get lower premiums and invest the savings back into your HSA.
Posted by Wiley Long at 11:24 AM | Comments (0)
January 14, 2012
Health Savings Account Cures High Health Care Cost
Health Savings Accounts allow you to contribute money to a savings account that earns tax-free interest, or invest money in stocks and bonds or mutual funds for tax-free earnings. You can tap your Health Savings Account (HSA) money to pay for medical expenses for you and your family and the withdrawals are also tax-free as long as you spend the money on qualified health care. That list is pretty long and includes many services that traditional health insurance doesn't cover, like dental care.
Before you can start a HSA, you must have a high-deductible health plan and not just any plan will do. Be sure to get a plan that is qualified to be combined with a HSA.
In addition to requirements regarding the size of the HSA plan's deductible, the insurance company offering the HSA plan must agree to report to the IRS.
As of 2011, high-deductible plans must have a minimum deductible of $1,200 for individual coverage or $2,400 for family coverage to be used in combination with a HSA.
The maximum yearly HSA contribution allowed is $3,050 for an individual plan or $6,150 for a family plan. If you are 55 or older, you can deposit an additional $1,000 every year in what are known as a "catch up" contribution.
Once you turn 65, HSA withdrawals can be used for any purpose. Until then, though, you'll have a 20-percent penalty for using HSA funds for anything other than qualified health care.
Any funds you don't need for health care just roll over from year to year and continue to grow with tax-free earnings. That makes a Health Savings Account very similar to an IRA. You can learn more about starting a HSA here on our website.
Posted by Wiley Long at 03:02 AM | Comments (0)
January 10, 2012
Can Health Savings Accounts Help Small Businesses Fight Health Care Costs?
According to a recent study commissioned by HSA provider ACS and conducted by Bucks Consultants, more small business owners and employees are turning to Health Savings Accounts as a low-cost healthcare option.
Health Savings Accounts (HSA) are owned by the employee, rather than the employer, even if the employer funds that HSA. These funds can be used to pay for qualified health care expenses, or kept for retirement.
Marcia Wagner, principal and founder of the Wagner Law Group, said: “Health Savings Accounts have gained popularity among small business owners for one simple reason: efficiency.” She added that HSA plans and Health Reimbursement Arrangements give people some "skin in the game." They have less to lose if they shop for coverage and actively manage as much of their own healthcare decisions as possible.
Close to 80 percent of polled small business owners reported that a high-deductible health plan that can work with a HSA is the key in controlling healthcare costs. In addition, 56 percent of HSA holders think that their HSA-qualified plan is more affordable than most other kinds of health plans.
Having an HSA plan can create real cost savings for small businesses particularly when employees are motivated to shop for the best health insurance.
Posted by Wiley Long at 01:05 PM | Comments (0)
January 06, 2012
A Health Savings Account Plan Can Help With Unemployment
With the cost of health insurance rising much faster than income, many people are not receiving adequate medical care. The number of people who do not have health insurance grows as layoffs continue. One big benefit of having a Health Savings Account (HSA) is that you own it completely. If you leave your job, all of the funds are yours to keep and you can use that money to pay for health care when you're between jobs.
When you contribute to a HSA, you can take a tax deduction to keep your federal, and almost always state, income taxes low. You don’t even have to itemize deductions to claim your HSA contribution as a deduction.
Then If you need to withdraw HSA money to pay for qualified health care, you aren't taxed on the money you withdraw either.
Unlike flexible spending accounts that can also be used to fund health care, your HSA funds are not lost at the end of the year if you haven't spent the money on health care. The balance just continues to grow with tax-free earnings year after year. That's right, I did say the earnings are not taxed even though you deposited pre-tax dollars.
You have control of your Health Savings Account. Your employer may also contribute to it, but you are the account owner. You take your HSA with you if you change jobs, are unemployed, or retire. You also have a choice in how to invest HSA dollars. The options range from interest-bearing accounts to mutual fund options. If this sounds like something you could use, take a look at the HSA plans that are available in your state with our online instant quotes.
Posted by Wiley Long at 06:18 AM | Comments (0)
January 02, 2012
Health Savings Accounts Control Health Care Costs
Two recently-released national surveys show that employers and employees are finding affordable health care with Health Savings Account plans. That's a combination of a high-deductible health insurance plan with a unique kind of savings that offers tax deductions and tax-free earnings, like IRAs.
According to the surveys, 77 percent of employers said that high-deductible health plans that worked with a Health Savings Account (HSA) could help control rising medical care costs. That's because a HSA can grow faster than traditional savings account in which earnings are taxed. Then, the savings can be used to pay for qualified medical expenses not covered by the HSA insurance.
HSA plans do make preventive health care exempt from having to meet a deductible in almost all states. Like most health plans with high deductibles, HSA plans tend to have low premiums. When that's combined with the tax deductions and tax-free earnings, HSA plans can be very rewarding.
HSA owners said they are saving more money with their HSA than they had before they opened one. They also said they are making healthier lifestyle choices now and using preventive health care. In addition, they are shopping more for lower-priced prescription drugs.
Employers also reported that the cost of providing HSA plans was less than the cost of standard group coverage. In addition, employees get to keep any HSA funds not spent on health care to build a retirement fund, which tends to make them more frugal. That also tends to keep the employer's health care costs down.
Both individuals and business owners may start a HSA. You can learn more about how a HSA works and the benefits it can provide here on our website.
Posted by Wiley Long at 10:56 AM | Comments (0)