Health Savings Account Blog

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 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)

December 29, 2011

HSA Plans Added To Boston University’s Insurance Options

Next year will mark the first time that Health Savings Account plans will be offered to Boston University employees. Staff will still have access to two previous health insurance options (HMO and PPO plans), as well.

HSA plans will enable them to pay for certain medical care expenses not covered by insurance. If HSA funds are not needed for health care, the balance can grow with tax-free earnings to add to their retirement savings.

A Health Savings Account (HSA) must be linked with a qualified high-deductible health plan. Such a plan will cover major medical expenses once the deductible is met, but it will also pay for preventive care even before that.

The university HSA plans are offered through Blue Cross Blue Shield of Massachusetts. Generally speaking, the HSA option works best for healthy people who expect few medical bills. These plans do have some perks that everyone can use, though. For example, employees can use HSA tax-free dollars to pay for health care that's not covered by insurance, such as acupuncture or dental care. Further examples are available on our website.

Posted by Wiley Long at 11:56 AM | Comments (0)

December 25, 2011

How Health Savings Accounts Impact Consumers

According to the ACS 2011 Employer and Account Holder Survey, 77 percent of small employers say that high-deductible health plans paired with a Health Savings Account (HSA) help to control health care costs. More than half (56 percent) of HSA plan holders agreed that their HSA-qualified health plan was affordable.

Starting a HSA requires a very specific high-deductible insurance plan. These plan deductibles start at $1,200 for individuals or $2,400 for families, but not all plans that meet the criteria will work. Confirm a plan is HSA eligible up front.

Once you have a HSA-qualified high-deductible health plan, you can contribute up to $3,050 for self coverage or up to $6,150 for a family plan to your HSA. These contributions cannot only pay for health care, but can also serve as income tax deductions to lower your federal, and usually state, taxes.

Once your HSA has a reasonable balance, you can comfortably switch to health insurance with a higher deductible in exchange for lower premiums. You'll have your HSA balance to pay for unexpected bills until the plan's deductible is met. For more information on how to use HSA plans, please see our HSA Information page.

Posted by Wiley Long at 09:58 AM | Comments (0)

December 17, 2011

Benefits of Health Savings Accounts

Since the inception of Health Savings Accounts, a lot of people with high-deductible health plans have chosen this option. In fact, there's been a consistent increase in the number of people starting a Health Savings Account (HSA) each year.

If you are in a high tax bracket, you can definitely benefit from an HSA plan. You can lower your federal income taxes, and even your state income taxes in almost any state, via HSA contributions. You don't even need to itemize deductions because HSA contributions are considered "above the line" deductions.

Health Savings Account funds may be spent on qualified medical expenses ranging from acupuncture to your childrens' dental care. HSA investment options vary as well. You can invest your HSA funds with as little or as much risk as you're comfortable. Investments can range from interest-bearing savings accounts to stocks and bonds.

Even though a high-deductible health plan is required to start a HSA, these plans do limit your out-of-pocket expenses. The cap on out-of-pocket costs this year is $5,950 for self coverage and $11,900 for family coverage. Next year, that maximum will be $6,050 / $12,100. To learn more, take advantage of our free HSA Webinar. You can register right on our site.

Posted by Wiley Long at 09:57 AM | Comments (0)

December 05, 2011

Health Savings Account Versus Retirement Account

Health Savings Accounts are usually recommended for tax deductions. The high-deductible health plans that work with them are commonly known for low premiums, as well, but another advantage is less well known.

Health Savings Accounts have a lot in common with IRAs, such as annual contributions can grow with tax-free earnings. Those contributions are also tax deductions. One difference between the two is that HSA money is always available to pay for personal or family health care, while IRA money is only available after you are 59-and-a-half.

You can get a larger tax deduction with an IRA, but Health Savings Accounts permit many investment options similar to IRAs, like bonds, mutual funds and stocks. An important difference between an HSA and an IRA is that HSA investments can be left in place long after you retire.

With the ever-growing cost of medical intervention, Health Savings Accounts fit modern needs with liquid assets readily available to cover health care for you and your family, while allowing you to build a retirement account at the same time. You'll find extensive resources here with us to explain how to make the most of your own Health Savings Account.

Posted by Wiley Long at 02:30 AM | Comments (0)

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 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 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)

October 29, 2011

Why Health Savings Accounts Have A Loyal Following

One reason is that HSA earnings are not taxed as long as the money remains in the account. Withdrawals to pay for most health care expenses will not be taxed, either. Health care expenses for family members can be covered with an HSA even though those family members are not covered under the HSA-qualified high-deductible health plan.

The other tax advantage is that HSA contributions double as tax deductions regardless of whether the money is spent on health care. Up to the government-set maximum, HSA contributions are considered to be “above the line” deductions. That means you can take the deduction without itemizing deductions.

A third reason for the growing popularity of Health Savings Accounts is that they offer greater flexibility than traditional forms of retirement savings. HSA funds may be invested in bonds, mutual funds or stocks. They can also be placed in savings accounts to earn tax-free interest. At age 65, HSA funds may be used for any purpose with no penalty fee, but taxes will be due for withdrawals not spent on qualified health care.

Unlike IRAs, HSA funds can remain invested throughout retirement. If needed for health care, though, HSA money can be withdrawn at any time with a penalty. HSA funds are not "locked up" until owners turn 65, and HSA owners are not forced to liquidate investments.

HSA Plans also tend to offer lower insurance premiums, which just adds to the savings. Even for those in high tax brackets, basically the middle class, HSA-qualified plans that have slightly higher premiums may be offset by all the additional savings. To see whether an HSA Plan would fit your situation, you can learn more about HSA Plans with our extensive online resources.

Posted by Wiley Long at 01:30 AM | Comments (0)

October 27, 2011

The New Health Savings Account Strategy

Consumers continue to make the most of Health Savings Account (HSA) Plans. One new trend is to increase the deductible on the HSA-qualified health plan as the HSA balance grows. This often results in lowering the monthly premium, which in turn increases the potential to save money. In case the Health Savings Account owner does need to meet the HSA plan’s deductible, the Health Savings Account balance can cover the gap until the insurance company starts to pay for medical claims.

Switching health insurance plans in order to lower premium costs as the HSA balance grows works better when the high-deductible health plan and the HSA are coming from different companies.

If the insurance company doubles as the HSA administrator, changing the health plan may mean changing the HSA, too.

The ability to grow a Health Savings Account balance is simply not possible with flexible savings accounts. Those funds revert back to employers if not used by employees at the end of the year. That’s one of the reasons that the HSA option has become so popular. HSA money rolls over every year to keep on growing with tax-free earnings, and it always remains the property of the employee even when an employer make contributions.

How you invest HSA funds is up to you even when your employer contributes to your HSA. As the demand for HSA options has grown, more financial institutions have jumped on board to add greater choice and convenience. You can now invest HSA funds in bonds, mutual funds, savings accounts that pay interest or stocks. Withdrawals can sometimes be made by check or with cards, like debit cards. More information about HSA benefits and perks can be found on our website.

Posted by Wiley Long at 01:02 AM | Comments (0)

October 24, 2011

Health Savings Accounts Mean Lower Taxes

In tough times, people need to be innovative to reduce what they spend on health care without giving up access to medical services. One way that people can gain more control over what they pay for health care and for taxes is called the Health Savings Account (HSA) Plan.

HSA Plans give tax deductions for money deposited in an HSA. That money accrues interest as long as it remains in the account, which can be until you want to use it for retirement. All the while it is growing with tax-free earnings, you can deduct annual contributions to lower your taxes.

Contributions made to your Health Savings Account before the April tax deadline becomes an "above the line" deduction for the previous year's tax return. Since that money is not counted as income, it’s not subject to income tax or FICA tax.

To make an HSA work, you need a high-deductible health plan that allows you to start an HSA. Not all do, so look for HSA-qualified plans. Once you have the insurance in place, you can open an HSA and you're under no requirement to fund it beyond the opening deposit. That means you can either fund it to the max, lower your taxes and deposit what you save on premiums and taxes. Or, you can wait until you have medical expenses to cover, deposit just enough to cover that and make an immediate withdrawal. You can even reimburse yourself at a later date.

You can learn how much you can deduct from your taxable income for individual and family plans, as well as see what types of HSA Plans are available here with us. Small business owners can also use these plans to cover employees for reduced premiums.

Posted by Wiley Long at 08:44 AM | Comments (0)

October 18, 2011

Health Savings Account Plans Offer Triple Benefits Over Old-fashioned Health Insurance

Health Savings Account (HSA) Plans are not just health insurance. They are low-cost, high-deductible insurance plans, potential tax deductions, and savings accounts with investment opportunities similar to IRAs and Roth accounts. That's how they offer three times more than old-fashioned policies.

Since they came to market in 2004, HSA Plans have attracted a loyal following. That's because their insurance premiums tend to be on the low-end and HSA Plans offer significant tax advantages.

There are no HSA contribution requirements other than upper limits. Funds deposited in an HSA can be taken as tax deductions even without itemizing deductions. They're considered "above the line deductions" for federal and almost all state tax filings. Our site shows how individual states treat HSA contributions.

Contributions to your Health Savings Account can on kept liquid to facilitate withdrawals as with an interest-bearing savings account, or invested in bonds, mutual funds or stocks. That makes them competitive with IRAs and Roth accounts.

HSA earnings are not taxed while in the account. Neither are withdrawals used pay for qualified health care expenses taxes. At age 65, HSA owners may spend the funds for any purpose, but HSA funds spent on anything other than eligible health care are then subject to taxation. More information about how these HSA plans work is available on our website: http://www.health--savings--accounts.com

Posted by Wiley Long at 10:03 AM | Comments (0)

October 01, 2011

Health Savings Accounts Protect In Numerous Ways

Health Savings Accounts have the potential to not only allow investors to cover health-care costs with tax-free dollars, but to also help them build a retirement nest egg.

If you are under 65, you can open a Health Savings Account (HSA) as long as you have a high-deductible health insurance plan that's qualified to be combined with one of these special health savings accounts. You can even keep an HSA while you have another insurance policy, but you cannot have medical expenses paid by both an HSA and other insurance.

One of benefits of HSA Plans is that they offer a range of investment options similar to IRAs. You can invest in bonds, mutual funds or stocks and any earnings will be tax free. Of course, an interest-bearing savings account is also an option.

HSA Plans have high deductibles and so they may offer premiums that run about 30 to 40 percent lower than conventional co-pay plans, depending on your age. HSA-qualified Plans must also have a limit on your out-of-pocket expenses. Visit our site to see more details about how Health Savings Account Plans work, including how to select an HSA administrator.

Posted by Wiley Long at 02:36 AM | Comments (0)

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 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)

August 29, 2011

Is An HSA The Right Choice For You?

As employers are looking for ways to battle increasing health care costs, more and more are leaning towards the popular Health Savings Accounts. Since the inception of Health Savings Accounts in 2004, consumers have been drawn to them. In part, this is because they allow consumers to get tax deductions for savings for health care costs.

To set up a Health Savings Account, you need a high-deductible health plan that's qualified to work with a Health Savings Account (HSA). Any money left in your HSA at the end of the year rolls over every year unlike when you have money in a flexible spending account.

According to Nick Calabrese, the vice president of consumers and product management of CIGNA, HSA Plans are becoming more popular because they help manage costs without sacrificing health care. That's never been more true than after health care reform.

An HSA Plan purchased now will cover preventive health care before the deductible is met. Calabrese added that opting for an HSA is a matter of personal choice. It's important to evaluate how much your out-of-pocket expense will be with each HSA Plan you consider. You can find out more about these plans with our educational online resources.

Posted by Wiley Long at 04:20 AM | Comments (0)

August 15, 2011

How Health Savings Accounts Really Work

A Health Savings Account, commonly known as an HSA, adds tax advantages to certain health insurance plans that have deductibles. Like other high-deductible plans, those that allow you to open an HSA, typically have premiums in the least expensive range.

Like other deductible plans, HSA Plans cover 100 percent of your medical expenses once the total out-of-pocket limits are met (including the deductible). For 2011, annual out-of-pocket expenses are limited to $5,950 for individual coverage and to $11,900 for family coverage. The minimum deductible for an HSA-qualified plan is $1,200 for individual coverage and $2,400 for family coverage in 2011.

As soon as your HSA-qualified health plan is in effect, you can open an HSA. It's important to do that asap even if you only make a minimal deposit. Once you start an HSA, you can retroactively deposit funds to pay for previous medical expenses, but your HSA must have been open when you incurred the expense.

Some of the other benefits Health Savings Accounts offer include:

- Pre-tax contributions can reduce your taxable income
- After-tax contributions are tax deductible
- HSA contributions and earnings grow tax deferred

In 2011, you may contribute up to $3,050 for an individual HSA or up to $6,150 for a family HSA. If you are 55 or older, you're allowed to make an additional $1,000 contribution.

Whatever you contribute may be used for qualified medical expenses without paying taxes on those funds. Any funds not needed for health care remain in your health savings account unlike flexible spending accounts, where unused funds are lost at the end of the year.

HSA funds remain your property when you leave a job even if the employer contributed to your HSA on your behalf. You also have control over how you invest the funds. You can choose from savings accounts, money market accounts, stocks, bonds, and mutual funds.

Before you turn 65, you'll get a 20-percent penalty if you use your HSA funds for anything other than qualified medical expenses. You'll also have to pay income taxes on those withdrawals. Once you're 65, you'll still have to pay taxes on HSA withdrawals, but there's no penalty. We've loaded our site with informational resources to help you decide whether an HSA is right for you.

Posted by Wiley Long at 07:59 AM | Comments (0)

August 03, 2011

Health Savings Accounts And The Reason Behind Their Popularity

The need to save for health care has never been more urgent. Perhaps, that's why more people are starting a Health Savings Account (HSA) and the amounts deposited in them are increasing. Just this year, an astounding 11.4 million people enrolled in a high-deductible health plan that allowed them to open an HSA.

The advantages of an HSA are only available to those who have a qualified high-deductible health plan, but these HSA plans offer other advantages, too.

Health Savings Account insurance plans are typically less expensive than full coverage plans, and the money saved on premiums can be invested in an HSA to cover expenses until the deductible is met. You won't need it for common preventive care, though. That's covered with no out-of-pocket costs regardless of the deductible.

An HSA can also get you tax deductions and build your savings (that can be invested in bonds, mutual funds or stocks) with tax-free earnings. Even after retirement, HSA funds can still be used for qualified health care on a tax-free basis. That can be a big help during retirement.

What’s even better is that HSA contributions are always yours to keep, even if your employer helps to fund your account. It doesn't matter whether you leave that job or retire. You always have control over how the funds are invested. Want to know more? Check out our free information on everything from how you can spend your HSA money to how to find an HSA administrator to set up your own tax-free savings account.

Posted by Wiley Long at 08:01 AM | Comments (0)

July 22, 2011

Confused About Health Savings Accounts?

There are a lot of health care coverage options available, but none offer more ways to save than a Health Savings Account, also known as an HSA. Although it may seem confusing at first, an HSA is really very simple. You get an insurance plan and a savings account and the combination could end up saving you thousands of dollars in just one year.

Your health insurance plan must be qualified to be combined with an HSA. This usually means that it will have a high deductible. Preventive care will be covered without having to meet the deductible.

You can save and not have to pay taxes on your HSA contributions to help you meet the deductible if you need other kinds of medical care. Your employer can contribute to your HSA, as well. Even so, the money from your employer will be yours to keep regardless of whether you leave that job or retire.

In exchange for having a deductible, you typically get a lower monthly premium. That makes it easy to save. Just add what you no longer send to your insurance company every month to your HSA. Tax-free earnings can build your account quickly.

Want to see how much an HSA Plan can save you? We've made it easy for you to learn how these HSA plans work, and our HSA experts are ready to answer your questions about Health Savings Accounts. You can even sign up for a live Question and Answer Teleseminar on Health Savings Accounts.

Posted by Wiley Long at 05:57 AM | Comments (0)

July 18, 2011

Health Savings Account Enrollment Climbed 14 Percent

According to the American Health Insurance Plan Trade Association, enrollment in high-deductible health plans that aid consumers in saving for health care increased by 14 percent and had an overall increase of 87 percent since the 1st quarter of 2008. Compared to January 2008 where 6.1 million consumers enrolled in high-deductible plans, the figure almost doubled this year alone with an approximate 11.4 million enrollees. Why are these plans so popular?

In general, people getting high-deductible plans, such as those that work with a Health Savings Account (HSA), pay cheaper premiums. In exchange for the low rates, policyholders have more out-of-pocket costs before their coverage starts to pay claims. That's where an HSA comes in to help you save with tax-free earnings to cover health care until your plan's deductible has been met.

With certain high-deductible plans, you can start an HSA and get a tax deduction for the money you deposit into it. Since the advent of Health Savings Accounts in 2004, more people have been helped by these kinds of cost effective HSA plans every year. As a matter of fact, in California alone, 1.1 million people enrolled in an HSA the past year.

To see how much you can save with an HSA, just review the information about how they work here on our site. You'll find information on selecting high-deductible health insurance that works with an HSA, how to find an HSA administrator and how to maximize your HSA benefits.

Posted by Wiley Long at 11:19 AM | Comments (0)

July 13, 2011

High-deductible Health Insurance With An HSA Works Perfectly

With inevitable rate hikes in individual health insurance premiums, the need to switch to a high-deductible health insurance plan is growing. Generally, insurance companies give out lower premium rates for those who have high-deductible plans. A deductible is a specific amount you have to pay every year before you can start receiving coverage. Plans with high deductibles are so popular because you can save a lot in terms of the premium price.

Pairing up your high-deductible health plan with a Health Savings Account (HSA) will help you lower your health care costs even more. By funding your HSA, you can comfortably raise your deductible as your HSA balance increases because you'll have the HSA as a backup should you need to pay for health care until you meet the deductible. Remember that every time you increase your deductible, your premiums are likely to go down.

To start an HSA, you'll need a qualified high-deductible plan. Not all high-deductible health insurance plans can be paired with an HSA. Deductibles on the eligible plans start at $1,200 for individuals or $2,400 for families. You can contribute up to $3,050 for individual HSA plans and up to $6,150 for family plans per year. You can use your contribution to lower your taxes so you'll save on premiums and taxes.

As all plans are subject to rate increases, having an HSA plan is not a guarantee that you won’t get hit by premium hikes. If you do and your health is good, you can switch to another health plan with no problem. To keep ahead of price increases, annually compare plans from leading insurers to determine if you are in the best available plan for your needs and budget. You can run instant quotes here with us at your convenience.

Posted by Wiley Long at 11:17 AM | Comments (0)

July 08, 2011

See How A Health Savings Account Can Save You Money

With the rising cost of health care services, Americans spend thousands of dollars every year to pay for monthly premiums and still have out-of-pocket expenses for health care. Many people are switching from co-pay plans to high-deductible health insurance to get lower premiums, but they may not realize they could save even more with a Health Savings Account (HSA) plan.

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. 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 Health Savings Account 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.

To see whether an HSA will save you money, learn more about the choices available with the online resources on our website. As the leading online experts specializing in Health Savings Accounts, we have compiled suggestions and information to help you choose an HSA administrator, select your qualified HSA health insurance plan and get discounts on health care you might need to cover, such as lab tests and prescriptions. We even show you how to get low-cost prescriptions from other countries at a fraction of the U.S. retail price.

Posted by Wiley Long at 11:16 AM | Comments (0)

July 05, 2011

How Do Health Savings Accounts Help People Save?

You might have already heard about Health Savings Accounts. A Health Savings Account (HSA) is pretty popular in the health insurance market today because it helps people to save with low premiums, tax-free earnings and reduced taxes. You only need one of the high-deductible health insurance plans that are qualified to work in combination with an HSA. How much money you make or how you earn money doesn't matter.

Unlike a flexible spending account, you never lose the money you deposit a Health Savings Account. You can change jobs and you can keep the full balance. The funds simply carry over every year and keep growing because you don't need to pay taxes on the earnings. Investment options give you a range of choices, too. You can invest this money in bonds, mutual funds, stocks or in an interest-bearing savings account.

These HSA plans typically costs 30 to 40 percent less than conventional co-pay plans. That's because the health insurance has a deductible. High-deductible plans are a favorite among the healthy because preventive care is already covered with no deductible or co-payment. Unless you need to see a doctor for a pre-existing condition, the low premiums will save you money. Even some people with pre-existing conditions are making high-deductible plans work by saving what they used to pay for premiums to cover medical bills until the plan's deductible is met.

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-qualified insurance plans with different deductibles so you can conveniently shop whenever you're thinking about increasing the deductible.

Posted by Wiley Long at 11:59 PM | Comments (0)

June 21, 2011

What Links Health Savings Accounts And High-deductible Plans?

If you want to take advantage of the benefits that Health Savings Accounts offer, you need to have a qualified high-deductible health plan. For singles, you need to have a deductible between $1,200 and $5,950. For those who have a family, your deductible should be between $2,400 and $11,900. Not every plan in that deductible range allows you to set up a Health Savings Account (HSA), though.

You can find plans that are eligible to work with an HSA here on our site. With the right plan, you can start funding your own HSA and earning tax-free interest. If you do need to buy health care that's not covered by your policy, you can with funds still without paying taxes on the money to pay for qualified health-related expenses for yourself, your partner or spouse, or your dependents.

Another good thing about having an HSA plan is that it allows you to take a tax deduction for your HSA contributions. If you don't need the money for health care, it will be rolled over to the next year and will keep growing with tax-free earnings until you reach retirement age. You can continue to use it for health care then, or withdraw funds to pay for anything at all and just pay taxes on it then like an IRA.

A Health Savings Account is a hot commodity now because you get a federal income tax deduction, and usually a state tax deduction, for money you contribute to it even if you take the standard deduction and don’t itemize deductions. On our website, you can learn more about setting up your HSA and how HSA plans can be your best tax tip ever.

Posted by Wiley Long at 08:05 AM | Comments (0)

June 17, 2011

Who Needs A Health Savings Account?

With the rising cost of health care, who wouldn’t want to cut down their health insurance premiums? That is why a lot of people are switching to high-deductible insurance plans and combining them with a Health Savings Account. The high-deductible insurance plans that are combined with an Health Savings Account typically cost less in monthly premiums than full-coverage plans. People with a health savings account have been able to reduce their premiums by as much as 40 percent, but that's not all an Health Savings Account can do.

A Health Savings Account (HSA) also lets investors save tax-free and withdraw to pay for health care without losing that tax-free advantage. You still don't need to pay taxes on funds taken from your HSA to pay for qualified health care expenses. In addition to interest-bearing savings accounts, you may also invest HSA money in bonds, mutual funds or stocks.

To be eligible to start an HSA, you need to have an insurance plan with a deductible of at least $1,150 for individual coverage or at least $2,300 for family coverage. Not all high-deductible plans let you open an HSA so be sure to get the right kind. Even though you have a high deductible on your plan, policies purchased after health care reform pay for preventive care completely. That means no co-pay, co-insurance or deductible.

To get all of these advantages, simply sign up for an HSA-compatible health insurance plan and choose a financial institution to administer your HSA. We have lots of valuable educational resources you can review to decide whether an HSA will work for you.

Posted by Wiley Long at 08:47 AM | Comments (0)

June 08, 2011

How Can Health Savings Accounts Help Build Your Retirement Savings?

Compared to a flexible spending account, having a Health Savings Account or an HSA plan can help build your retirement fund and decrease your taxes. Much like a IRA, the money you place in your Health Savings Account grows fast with tax-free interest.

To juice up your retirement savings, try not to touch your HSA funds as much as possible. If you do need Health Savings Account for health care, you can withdraw funds and not even have to pay tax on what you take out as long as you use it for qualified medical expenses. That includes a long list of health-related things like going to the dentist or seeing an herbalist. You can use your HSA for health care for your spouse or kids, too.

One of the best things about having an HSA is that that unused funds roll over at yearend. You never lose the balance like you do with a flexible spending account. To set up an HSA, you'll need a certain kind of high-deductible health plan. These HSA plans must have a minimum deductible of $1,200 for self-only coverage or $2,400 for family coverage.

On our website, it's quick and easy to see rates for HSA-qualified insurance plans. Plus, you can read about how much you can save with an HSA plan. See how to start your own HSA today with our educational resources on selecting an insurance plan and an HSA administrator.

Posted by Wiley Long at 08:48 AM | Comments (0)

May 22, 2011

A Health Savings Account Can Help Lower Your Taxes

If you want to cut down the taxes you are paying, why not combine a qualified high-deductible health insurance plan with a Health Savings Account (HSA)? If your health is good, switching to a high-deductible HSA plan can help you save 30 to 40 percent in premiums compared to a co-pay plan.

Another advantage of an HSA is that it can lower your federal tax as well as your state income tax in almost all states. Most health care costs are considered tax deductible when paid for from an HSA. You're allowed to take a tax deduction for all qualified health care expenses even if you don't itemize on your tax returns.

HSA plans purchased after health care reform became law, include services that are recommended to help prevent disease. Now that you can maintain recommended health care without a lot of out-of-pocket expense, high-deductible plans make more sense.

Just like a medical IRA, the money you place in your Health Savings Account is tax-free. When you can put pre-tax money aside to pay for future medical costs, you can build up your savings to cover health care before your deductible has been met. When you don't need those funds, let them grow tax-free year after year.

After you retire, you can use the money you placed in your HSA for anything at all and just pay taxes on it. You can even continue to use the funds for health care and not pay any tax on it. Consider how much you can save in income taxes, with lower premiums and by earning tax-free interest. Find out more about Health Savings Account plans here on our website, including which high-deductible plans will allow you to open an HSA.

Posted by Wiley Long at 04:16 AM | Comments (0)

May 19, 2011

Get A Health Savings Account Before It’s Too Late

Healthy as we may seem today, we never know when illness can strike. Would switching from a full-coverage plan to a high-deductible health plan with a health savings account (HSA) be a wise decision to make? What if you need to meet a high deductible? You may be surprised to find that when you add up how much you can save on premiums and by reducing your taxes, it could actually cost less even if you do have to pay for health care until a high deductible has been met.

If you have good health and do not need much medical care, a high-deductible insurance plan that has low premiums can be a "no brainer." If you are in a high tax category, an HSA or Health Savings Account can definitely help lower your federal income tax and state income tax in almost all states.

Even though you may have to pay for health care until you meet that high deductible, if you get new coverage now, you won't have out-of-pocket costs for preventive services. Those are 100-percent covered with health care reform. For most health care you need before meeting your deductible, you can utilize a special form of savings that can only be opened after you have a qualified high-deductible health plan known as a Health Savings Account. The money you place in your Health Savings Account earns tax-free interest, which aids you to grow your balance quickly.

The funds you don’t use will be rolled over every year just like an IRA. HSA plans can even double as a retirement fund and could really come in handy when it comes to taking care of your health care costs. An HSA is indeed a tool that can help you handle future medical bills. Find out more about Health Savings Account plans on our website, including which high-deductible plans will allow you to open an HSA, how to pick an administrator for your HSA and which health care expenses you can pay for from an HSA.

Posted by Wiley Long at 08:40 AM | Comments (0)

May 13, 2011

Health Savings Accounts Make Their Case

Proponents say that only Health Savings Accounts separate health care from insurance. For example, say you have family coverage through work that costs the employer $12,000 annually. If your employer pays for all the premiums and you have $25 co-pays to see a doctor, your expense is limited.

In contrast, if your employer still spends $12,000 a year, but puts $5,000 of it into a Health Savings Account (HSA) in your name, $5,000 of your health care benefit is now legally yours. Instead of a co-pay plan, your employer must buy a High-deductible Health Plan that's qualified to work with an HSA.

Preventive care is 100-percent covered, but you'll have to pay for other services until the deductible has been met. Any Health Savings Account funds you don't spend on health care are yours to keep. That's distinctly different from Flexible Spending Accounts, which are “use it or lose it” at the end of the year.

Each year, your employer contributes $5,000 to your HSA. As long as your health remains good, the balance in the HSA account can grow with tax-free earnings. It's yours to keep if you change employers or retire.

Posted by Wiley Long at 09:50 AM | Comments (0)

April 14, 2011

Health Savings Accounts Help You Control Your Health Care Costs

With Health Savings Accounts, people can become more proactive when it comes to making their own health care choices. An HSA plan allows you to contribute money to a savings account that earns tax-free interest. Then, you can tap that money for future medical expenses and the withdrawals are also tax-free as long as you buy a type of health care that is qualified to work with an HSA. That list is pretty long and includes many services that traditional health insurance doesn't cover, like dental care.

Before you can start an 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 an HSA. These two always go hand-in-hand. 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 an HSA.

The maximum yearly HSA contribution allowed is up to $3,050 for an individual HSA plan and $6,150 for a family HSA plan for both 2010 and 2011. If you are 55 or older, you can deposit an additional $1,000 every year in what are known as "catch up" contributions.

Once you turn 65, HSA withdrawals can be made 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 quickly with tax-free earnings. That makes an HSA very similar to IRAs. You can learn more about how much you could save with your own HSA right here on our website.

Posted by Wiley Long at 09:24 AM | Comments (0)

March 28, 2011

Learn Facts About Health Savings Accounts That You Should Know

Health Savings Accounts have been gaining popularity with consumers ever since they started way back in 2004. Once you have a high-deductible health plan (HDHP) that is qualified to work with a Health Savings Account (HSA), you are eligible to open an HSA. HSA plans allow you to deposit tax-deductible funds into an HSA that you can use to cover qualified medical costs until your deductible has been met. If you were not able to use the contributions for that year, the money would be carried over to the next year and it would continue to grow with tax-free earnings.

HSA plans allow individuals to be more responsible when it comes to health care decisions. In addition, consumers are getting a Health Savings Account because it helps reduce income taxes. Contributions placed in your HSA are tax-deferred and withdrawals are tax-free when used to pay for qualified medical bills.

However, HSA plans are not available for everyone because insurers are still allowed to decline applications from people who have pre-existing medical conditions. Independent health insurance brokers generally are familiar with the underwriting practices of various insurers and may be able to suggest which companies have less strict underwriting policies. That may help you find coverage, but you might still have exclusions on your coverage.

You will still have rate increases on your premiums even if you have an HSA plan. With underwriting evaluating the potential cost to pay for your heath care, it's much easier to change health insurance while your health is good. Keep your HSA administrator separate from your insurance provider to make that even easier.

Posted by Wiley Long at 09:23 AM | Comments (0)

March 24, 2011

Are Patients With Health Savings Accounts More Savvy?

The nonprofit Employee Benefit Research Institute recently released their survey that investigated a link between cost-conscious behaviors and those who make use of health savings accounts and health reimbursement arrangements. The results show that people with these plans are more likely to budget, compare prices and ask for generic drugs.

However, investigators also noted that people with HSA plans didn’t appear any more likely to talk to doctors about cost, request less expensive drugs or check quality ratings on doctors or hospitals. Nor was any relationship seen between health savings account balances and cost-conscious behavior.

The report's author and director of the institute’s health research and education program, Paul Fronstin, noted that, “It is expected that individuals who are given more control over funds allocated for health care services will become more cost-conscious, especially once they become more educated about the actual price of health services. However, no evidence was found to support this with respect to some of the measures used in this study of cost-conscious behavior.”

This online survey of a nationally-representative sample involved 4,508 adults between the ages of 21 and 64, who have private health insurance. The results also indicated that the number of people with health savings accounts grew to 5.7 million in 2010. That was an increase of 1.2 million since 2006. You can see whether an HSA or health reimbursement arrangement is right for you with the resources on our website.

Posted by Wiley Long at 11:38 AM | Comments (0)

March 17, 2011

Health Savings Accounts Continue To Grow In Popularity

Health Savings Accounts and Health Reimbursement Arrangements have become increasingly popular, according to a new Employee Benefit Research Institute (EBRI) report. There's been an increase both in the number of these HSA plans and the balances within the Health Savings Accounts.

In 2010, the EBRI reported 5.7 million Health Savings Accounts holding a combined total of $7.7 billion. In 2006, there was just $835 million held in 1.2 million Health Savings Accounts and balances only averaged $696.

To take advantage of a Health Savings Account (HSA), you must buy one of the high-deductible health insurance plans that are qualified to be combined with an HSA. This year, these high deductibles start at $1,200 for individual coverage and $2,400 for family coverage. The qualifying policies can have out-of-pocket limits up to $5,950 for indidivual plans and $11,900 for family coverage.

An HSA also offers tax advantages. You can contribute up to $3,050 to an individual HSA or up to $6,150 to a family plan and claim a tax deduction on federal taxes and almost all state taxes. Tax deductions are not based on your income and you don’t have to itemize deductions to take a deduction. Learn more about tax-free HSA withdrawals to cover a wide range of qualified health care right on our website.

Happy St. Patrick's Day to everyone!

Posted by Wiley Long at 06:15 PM | Comments (0)

March 12, 2011

Health Savings Accounts Make The Most Of Your Savings

Combining a Health Savings Account (HSA) with a high-deductible health insurance plan can help you get lower premiums, pay less in income tax and build your own medical retirement fund. A number of benefits are available through an HSA and that's why they are becoming such a hot commodity.

Health Savings Accounts present tax advantages by reducing your taxable income and allowing you to earn tax-free interest. You can only start an HSA after you buy one of the high-deductible health insurance plans that are qualified to work with an HSA.

An HSA can be used to pay for qualified health care that's not typically covered by traditional health plans. You're allowed to deposit tax-deductible contributions and withdraw funds to pay for co-pay charges, chiropractic care, dental services, health-related travel expenses and prescriptions. That can give you more flexibility in choosing health care options. You can also use your HSA to cover health care for a loved one.

Prevention is another way to cut your health care costs. Invest in staying healthy to reduce the health care you'll need today and during retirement. You'll benefit from fewer doctors visits and hospital stays. Find out more about how to set up an Health Savings Account right on our website.

Posted by Wiley Long at 11:16 AM | Comments (0)

March 07, 2011

Why The Rise In The Use Of Health Savings Accounts?

Growing from 1.2 million in 2006, the number of health savings accounts and health reimbursement arrangements had risen to 5.7 million by 2010, according to the nonprofit Employee Benefit Research Institute (EBRI).

The EBRI also reported that people who exercised, were not obese and did not smoke tended to have higher health savings account balances than people with less healthy behaviors. As expected, individuals who used cost or quality information maintained higher health savings account balances than those who did not use this information.

"In 2006, 15% of the population with a health savings accounts and health reimbursement arrangements had held an account for less than six months; 42% for six months to a year; and 30% for one to two years," according to the report. "By 2010, 8% had held them for less than six months; 19% for six months to a year; and 35% for one to two years."

We've put together a library of resources on our website to document why more people are investing in health savings accounts and health reimbursement arrangements.

You can visit us online at: http://www.health--savings--accounts.com

Posted by Wiley Long at 10:57 AM | Comments (0)

March 04, 2011

What Should You Do With Your Health Savings Account When You're Eligible For Medicare?

You do have certain choices. For example, my wife will be 65 this year, so she'll be eligible for Medicare a year earlier than I will be. We already try to contribute the maximum allowed to our health savings account (HSA) annually. In this situation, we needed to find out how much we could contribute in the year she turns 65 in June and how to use our HSA once she enrolls in Medicare.

According to Roy Ramthun, the president of HSA Consulting Services, when my wife becomes a Medicare beneficiary, she will no longer be allowed to contribute to an HSA. She'll have to prorate contributions for the six months she has an HSA plan before she enrolls in Medicare this year. The maximum HSA contribution is now $6,510 for family plans and $3,050 on individual coverage. If you're 55 or older, you can make an additional $1,000 contribution each year.

If my wife enrolls in Medicare when she turns 65 this June, she could contribute 5/12 of the $6,150 for family coverage ($2,562.50) plus 5/12 of a catch-up $1,000 contribution ($416.67). The IRS Instructions for Form 8889 for a worksheet can help you calculate how much you can contribution in these kinds of situations to your Health Savings Account.

Even though my wife can't continue to contribute to an HSA once she enrolls in Medicare, she's still allowed to withdraw HSA funds tax-free for qualified health care expenses, which includes co-pays, deductibles, dental care, prescribed drugs, vision care and a portion of long-term care premiums. That portion is based on age. My wife will also be allowed to use HSA money to pay Medicare-related premiums tax-free. That works for Medicare Part B premiums as well as for Medicare Advantage or Medigap plans.

Posted by Wiley Long at 07:01 AM | Comments (0)

February 21, 2011

Learn How Health Savings Accounts Work

Most people become interested in a Health Savings Account (HSA) because they want to lower their insurance premiums. The high-deductible insurance plans that are combined with an HSA typically cost less in monthly premiums than full coverage insurance plans. An HSA also lets investors save tax-free and withdraw to pay for health care without losing that tax-free advantage.

At the end of 2010, the deductibles on plans eligible to permit opening a Health Savings Account started at $1,150 for individuals and at $2,300 for a family. Even before the deductible is met, plans must cover preventive care, including wellness exams and vaccinations.

Out-of-pocket costs for individuals with HSA plans are limited to $5,800. That limit is $11,600 for family plans. Both individuals and their employers can make deposits into the same HSA as long as contributions don't exceed the maximum amount allowed. That limit is is $3,050 for individual accounts or $6,150 for family plans.

HSA funds are completely independent of employment. If an individual leaves a job, he may discontinue his group coverage or purchase COBRA insurance to maintain the same high-deductible coverage. If he gets another high-deductible plan via a new employer or an individual plan, he is still eligibile for HSA tax benefits. Even if he has no health insurance, the HSA funds are his to keep although the tax benefits of the HSA will be lost. Learn more about how Health Savings Accounts work on our website.

Posted by Wiley Long at 10:13 AM | Comments (0)

February 07, 2011

The Changing Health Savings Account Landscape

President Obama acknowledged health savings accounts by including them as one of his policy proposals. Health savings account (HSA) plans are associated with the lower premiums of high-deductible health insurance policies.

The attraction of low premiums is integral to the increase of employers switching to HSA plans for their employees. According to Tower Watson and the National Business Group on Health's 2010 survey, 83 percent of businesses have already or are planning to change the health care they offer.

Employers are fighting the sky-rocketing cost of health care in the U.S., which is growing by approximately double the rate of inflation. The 2010 survey found that 61 percent of companies contacted were interesed in consumer-driven health plans (CDHPs), such as low-premium, high-deductible health insurance plans that are qualified to work with an HSA.

According to the CEO of PayFlex Robert Natt,“Health Savings Accounts have the potential to transform healthcare like managed care did in the 1980s. As the largest third-party administrator of Health Savings Accounts today, PayFlex’s vision is to bring innovative products and services to the market—with the ultimate objective of increasing engagement and driving down costs.” More information about how HSA plans work is available on our website.

Posted by Wiley Long at 02:04 AM | Comments (0)

January 19, 2011

Can A Health Savings Account Work For You?

When you're shopping for health insurance, a health savings account (HSA) offers several advantages that can save you more than typical plans.

There are two big benefits to HSA Plans. Since a Health Savings Account is combined with high-deductible health insurance, you can get lower premiums than with plans that have low deductibles. You can also grow your Health Savings Account balance in a tax-free way.

While you're building your savings with an HSA, you can accumulate the cash to pay for a high deductible if necessary, and the reduced premiums will help.

If you don't have to use your HSA to meet the deductible on your health insurance, this cash can grow tax free to be used for retirement. All the cash in your HSA when you turn 65 is yours to use as you see fit just like IRA funds.

To get both of these advantages, simply use a reputable insurance agent to sign up for an HSA-compatible health insurance plan and choose a financial institution to administer your HSA. Find out more about the benefits of HSA Plans on our website.

Posted by Wiley Long at 10:10 AM | Comments (0)

January 16, 2011

HSA Plans And HRAs Grow By 27 Percent

Health Savings Accounts and Consumer-directed Health Plans (CDHPs) offer greater control over health care expenses. That could be what is behind the rapid growth in popularity of these Health Savings Accounts, which had been set up by an estimated 23 million people in 2009. That was a 27 percent increase over 2008, according to Mercer’s National Survey of Employer Sponsored Health Plans by the American Association of Preferred Provider Organizations (AAPPO).

Karen Greenrose, the president and CEO of AAPPO, said, “We also saw small employers turn to CDHPs at a much greater rate, largely due to this cost savings. CDHPs, which are predominately built on PPO networks, offer the affordability, choice and access that employers and consumers alike are looking for.”

This analysis also indicated that employers prefer health savings accounts, but employees are enrolling in Health Reimbursement Accounts (HRAs) at a higher rate. HRAs require an employer contribution, but Health Savings Accounts allow contributions from both employers and employees.

Health Savings Accounts offer employees greater control over account balances. HRAs can be taken back by the employer at the plan's year-end, but HSA Plan funds roll over to the following year. Employees also retain these account balances if they lose their job, switch to a different job or retire.

Posted by Wiley Long at 11:02 AM | Comments (0)

January 05, 2011

Health Savings Accounts Manage Medical Expenses

If you're relatively healthy without a lot of medical costs and you're in a high tax bracket, a Health Savings Account can get you lower health insurance premiums and tax deductions for health care.

A Health Savings Account lets you earn interest tax free to save for future health-related expenses. That's how an Health Savings Account Plan lets you grow your balance quickly.

Any funds you don't use for qualified health care expenses roll over every year and are yours to keep independent of your employment. An Health Savings Account can also double as a retirement fund. Think of an Health Savings Account as a medical IRA.

The most important advantage of an Health Savings Account is that it makes health care expenses tax deductible. That's a big help when you're in a high tax bracket.

After you turn 65, you may withdraw funds from your Health Savings Account for any use at all. Until you are 65, if you make a withdrawal for anything other than a qualified medical expense, you'll have a 20 percent penalty and tax on the amount withdrawn.

A Health Savings Account only works with a high-deductible health insurance policy. These HSA Plans typically have lower premiums than full coverage insurance, and you may use your Health Savings Account to pay for your premiums.

Posted by Wiley Long at 11:18 AM | Comments (0)

December 18, 2010

Health Savings Accounts Can Help Small Companies

With the outrageous cost of health care in the U.S., every business owner is trying to cut costs. This is especially true for small business owners. Health Savings Accounts can provide a viable option to make health care more affordable.

A Health Savings Account (HSA) is a tax-exempt savings account, which can be used to pay for qualified health care expenses. These accounts can only be used with certain high-deductible health insurance policies.

Covered individuals and families may reduce their federal, and often their state, tax bills with tax-deductible HSA contributions. Unlike IRAs, there are no limitations for high-income earners.

Health Savings Accounts are owned by the employee, so the funds remain with the employee when they leave a company for any reason. These accounts grow with tax-free interest and there are no penalties for withdrawals when used for qualified health care expenses.

The benefits for small business owners can be substantial because premiums are typically less for high-deductible coverage, and employees absorb management duties to reduce company paperwork. The tax savings that are associated with Health Savings Accounts may be the biggest benefit for small business owners. Find out more about the advantages of health savings accounts at http://www.health--savings--accounts.com/

Posted by Wiley Long at 10:24 AM | Comments (0)

December 15, 2010

HSA Plans Are A Great Way To Save On Health Care

One big benefit with 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 never have to worry about not spending the whole balance before the year ends.

Unlike with flexible spending accounts, HSA funds roll over to the next year, and continue to earn tax-free interest. The HSA deposits you make are considered pre-tax contributions, which is a great money saver.

Use the balance in your health savings account any time you want for eligible health care expenses that your health insurance doesn't cover, including co-pays and lab tests.

You can access HSA funds with a debit card, which can be used anywhere that Visa and MasterCard are accepted. You'll also have checks on your HSA to use just like a checking account.

If you prefer, you may pay for health care services directly and reimburse yourself from your HSA. The type of access you have may depend on your employer, but you can set up an HSA even if you're unemployed. So if your employer offers HSA Plans as an option, seriously consider how it can save you a great deal of money throughout the year!

Posted by Wiley Long at 11:17 AM | Comments (0)

December 09, 2010

How You Can Benefit From Having Your Own Health Savings Accounts

A health savings account (HSA) is basically a tax-free way to save. You may be thinking that's what an IRA is, but an HSA is specifically used for healthcare expenses. Paying for healthcare through your HSA makes these costs tax-deductible for self-employed account owners.

Any funds you don't need for healthcare continue to grow with tax-free interest until you turn 65. Then you may withdraw funds to use on whatever you like. Until you are 65, you'll face penalties if you use HSA funds for anything other than qualified healthcare.

An HSA is combined with a qualified high-deductible health insurance policy that covers large medical bills. You use your HSA for healthcare expenses until that deductible has been met.

If you are under age 65 and have a qualified HSA insurance plan, you can open an HSA. You will not be considered eligible by the insurance company if you are covered by another health insurance policy that is not a qualified high deductible plan, though.

To learn more about the benefits of an HSA, please visit www.health--savings--accounts.com

Posted by Wiley Long at 10:33 AM | Comments (0)

December 06, 2010

How Health Savings Accounts Contributions Work

You are allowed to contribute one-twelfth of the total permitted annual contribution for any complete month that you are covered by a high-deductible health insurance policy. In 2010 and 2011, the annual maximum contribution for an individual is $3,050. Health Savings Account owners age 55 or older may add $1,000 to the maximum each year as a catch-up contribution. The maximum Health Savings Account contribution for those with family coverage is $6,150.

If you make any Health Savings Account contributions in excess of this rule during a tax year, you will be subject to a testing period.

This testing period requires you to maintain your high-deductible health insurance though the entire month of December in the current tax year and throughout 12 months in the next tax year. If you fail to satisfy the testing period, the additional contributions made under this exception become taxable and subject to a penalty tax.

In 2011, the maximum out-of-pocket Health Savings Account expense (including deductibles) that employees can be required to pay will rise to $5,950 for single coverage or $11,900 for family coverage.

HSA plans that are qualified to work with an HSA must have deductibles of at least $1,200 for individual coverage or $2,400 for family coverage.

Once your HSA is set up, both you and your employer can contribute. Your HSA contributions may be deducted on your tax return. If you contribute through your employer's pre-tax program, your contributions must be shown on your W-2 in box 12, along with your employer's contributions.

Posted by Wiley Long at 10:31 AM | Comments (0)

November 29, 2010

Health Savings Accounts Made Easy

Health savings accounts are setting records for the number being opened and the amounts being deposited. With all of this popularity, banks are making it even easier to become a health savings account (HSA) owner.

Will an HSA plan save you money? To decide, look at your taxable income and your medical expenses. If both are high, you can reduce your taxable income by subtracting most health care costs. Just check which expenses can be paid from your HSA without incurring a penalty.

Unfortunately, not every high-deductible health insurance plan can be combined with an HSA. More people are turning to high-deductible health insurance to get lower premiums, but the plans that are qualified to be combined with an HSA have higher premiums than other high-deductible health insurance.

Once you choose a qualified high-deductible health insurance plan, setting up an HSA is easy. You can apply online or request an application by mail. You can also get free professional help to answer questions about HSA plans and how to complete an application.

When your qualified high-deductible health insurance is effective, you can choose an HSA administrator and set up your HSA. Many banks or other financial institutions can help with an HSA. It’s wise to keep your HSA administrator separate from your health insurer so you can switch insurance without having to move your HSA. Fees vary significantly, so do your homework before settling on your HSA administrator. Compare set-up and maintenance fees as well as what institutions charge for transactions.

Investment options should also be investigated. The choices include brokerage services, fixed-interest rate accounts and mutual funds. Some HSA services include checks, debit cards, Internet transactions and online account access, just like standard checking accounts, but most HSA administrators charge for these services. You can find more answers to your questions about HSA Plans at: http://www.health--savings--accounts.com

Posted by Wiley Long at 11:07 AM | Comments (0)

November 26, 2010

It's Easy To Start Your Own Health Savings Accounts

Banks are making it easier to join the ten million health savings account (HSA) owners, and health savings accounts are growing both in number and in deposits.

Is a health savings account right for you? That depends on your taxable income and your current healthcare expenses. If both are high, you may be able to reduce your taxable income by using an HSA to make your healthcare expenses tax deductible.

Unfortunately, there are limits on which high-deductible health insurance plans work with an HSA. HSA plans that are qualified to be combined with an HSA have higher premiums than some other high-deductible policies.

Over-the-counter medications will no longer be reimbursable from an HSA, but it is still ok to use your HSA for insulin or prescribed medications. The penalty for using an HSA for non-qualified expenses is doubling from 10 to 20 percent.

As an HSA owner, you'll find that investment and service options typically increase for higher HSA balances. It’s similar to checking account options, but most HSA administrators charge fees for their services. The fees vary significantly so it's important to compare HSA administration fees and services. For more information on setting up your own HSA, please visit: http://www.health--savings--accounts.com

Posted by Wiley Long at 10:21 AM | Comments (0)

November 15, 2010

Health Savings Accounts Save Money For Businesses

If you’re a business owner, you may want to consider a health savings account because it can save you money. Whether you provide health insurance benefits to your employees or you are the only employee, when you combine the health insurance benefit with the benefit of a health savings account, you and the business come out winners. The first benefit is that you can typically get lower rates on a group plan than you can on an individual plan. Couple this with the fact that group plans tend to have better coverage, and you’re already a couple steps ahead. Add in the health savings account to the mix, and now you have an opportunity for each employee to reduce their annual income tax obligation too.

Health Savings Account Benefits the Business

Businesses, too, benefit from the use of these types of special health savings accounts that coordinate with the group health plan. The primary benefit is it gives employers or business owners the opportunity to put health care control in the hands of the employees. In essence, this lifts the burden from the shoulders of the business owners or managers. This equates to less paperwork for the business to manage, adds privacy for the employees, and decreases overhead expenses to the business.

Health Savings Account and the Employee

In order to reap the benefits of a health savings account, employees do have to take the step to start up the health savings account. The high deductible health insurance provider typically recommends an institution, such as a bank, but the employee can choose their own institution that offers health savings accounts. The money employees deposit into this account is tax deductible so it reduces the tax obligations of the employee at the end of the year.

it provides health care coverage at an affordable rate, allows them to put away money tax free to cover medical and health expenses not covered by the policy, and reduces tax liabilities.

To find out more about the advantages of the HSA and how to establish one, visit http://www.health--savings--accounts.com/

Posted by Wiley Long at 11:11 AM | Comments (0)

October 28, 2010

Health Savings Accounts: Five Things You Need To Know

More and more companies are switching to high-deductible plans that can be combined with tax-advantaged Health Savings Accounts to cover medical bills. Such plans usually have premiums of 10 to 40 percent less than traditional plans. Approximately 45 percent of large companies offer this option, and that’s an increase of 25 percent from 2007, according to the human resources firm Towers Watson.

To pay for health care, you can deposit pretax dollars into your Health Savings Account of up to $3,050 for individuals in 2011, or $6,150 for families, plus an extra $1,000 if you're 55 or older. Your employer may also contribute, and any unused funds roll over year after year to earn tax-free interest. Withdrawals for qualified health care expenses are also tax-free.

These types of HSA plans can make sense for healthy, young people who need little health care. They may also work if you need a lot of health care, such as when you develop cancer, according to Jay Savan, a consultant with Towers Watson and a financial planner. That’s because these plans limit your out-of-pocket expenses to $5,950 for individuals, or $11,900 for families. After that, you pay nothing more. With traditional plans, you'd never stop owing co-pay charges.

Both the deductible and your coverage can vary widely so it’s important to evaluate each HSA plan carefully before you enroll. Ask your insurer for a breakdown of your 2010 expenses so you can accurately compare how much you'd have to pay under different plans.

If you don’t spend all of your HSA balance on health care, the remainder grows tax-free like an IRA. Starting at age 65, you may withdraw funds without a penalty and use the money for any purpose, but you will owe income taxes on it.

Posted by Wiley Long at 10:34 AM | Comments (0)

October 25, 2010

Health Savings Accounts To Grow With Health Care Reform

Retirement savings have been the backbone of the financial investing industry, which is now looking to tax-advantaged Health Savings Accounts as the next big thing.

With a new mandate for more people to obtain health insurance, experts think many people will invest in lower-premium, high-deductible plans. That makes it likely that more people will also open health savings accounts in combination with the high-deductible plans.

With their tax advantages, health savings accounts have been growing rapidly in recent years and the president of the largest mutual fund recordkeeper for health savings accounts, John Vellines, says, "You're going to see an explosion of these assets."

Health savings accounts have already attracted $8.6 billion in deposits by allowing people to make health care expenses tax deductible. Industry experts forecast these assets will ultimately grow to $50 or $100 billion.

In 2010, only insurance plans with an annual deductible of at least $1,200 for individuals or $2,400 for families can be combined with a health savings account (HSA). Every year, approximately 30 percent of HSA owners fund their accounts to the maximum limit, which is $3,050 for an individual or $6,150 for a family in 2010.

Approximately 20,000 companies offered employees health savings accounts in 2009. The largest U.S. conglomerate, General Electric, stopped providing traditional healthcare plans in 2009. It offers an HSA plan to all 75,000 U.S. salaried employees.

To learn more about the advantages that are driving this move to health savings accounts on our website at http://www.health--savings--accounts.com

Posted by Wiley Long at 03:18 AM | Comments (0)

October 17, 2010

Health Savings Accounts Are Profitable For Credit Unions

Health saving accounts that work in conjunction with high-deductible health insurance plans are not just growing in popularity among employee groups, individuals and families. Forty-five percent of employers already offer high-deductible health insurance that's qualified to work with health savings accounts.

Even more employers are expected to offer health savings account (HSA) plans in the down economy. This increase in popularity positions credit unions to increase their share of the HSA-plan market.

Because HSA plans are increasing being sought by individuals and employers, HSA plans can boost credit union memberships, deepen their financial relationships with clients and provide additional earnings.

More information about HSA health insurance plans, including small group HSA plans and the tax advantages inherent in HSA plans, is available online on our website at http://www.health--savings--accounts.com

Posted by Wiley Long at 11:07 AM | Comments (0)

October 13, 2010

Health Savings Accounts: Your Insurance Against Unemployment And For Retirement

Health Savings Accounts have the potential to not only allow investors to cover their health-care costs with tax-free dollars, but to also help protect against periods of unemployment and during retirement.

If you are under 65, you can establish a Health Savings Account (HSA) when you choose one of the high-deductible health insurance plans that work with an HSA. You can even keep an HSA while you have another insurance policy, but you cannot have medical expenses paid by both your HSA and the other insurance.

To work with an HSA, health insurance plans need a deductible of at least $1,050 for individuals or $2,100 for families. In addition, health insurance plans must have a limit of $5,250 for individual and $10,500 for family out-of-pocket expenses.

One of benefits of HSA plans is the range of investment options available. Do you plan to use your HSA funds in the near future? If so, you will probably want a more liquid, interest-bearing account, such as a savings account. If you are more interested in saving long-term and do not expect to use your HSA funds right away, look at more lucrative investment options. You can learn how to maximize your HSA investment on our website with online resources regarding choosing your high-deductible insurance, selecting an HSA administrator and establishing your HSA to give you the greatest benefits.

Posted by Wiley Long at 08:51 AM | Comments (0)

September 29, 2010

Saving with a Health Savings Account: Getting Started

Americans are spending thousands of dollars on health care each year to pay for the cost of monthly premiums along with out-of-pocket expenses as they switch to high-deductible plans for lower premiums. Many people want to know what a Health Savings Account can do for them, but they're not sure how to get started. Here are the basics on using a Health Savings Account (HSA) to save money:

An HSA can only be used with certain high-deductible insurance plans that are qualified to work with health savings accounts. The amount you invest in your HSA can reduce your annual income tax, but that's not all. Any money you leave in your HSA will grow tax free and your annual deposit can be as high as your insurance deductible.

High-deductible insurance plans typically have some of the lowest premiums. You can save on the low premiums and deposit your savings to grow tax-free until needed. If you never need the money for health care, you will be earning tax-free interest until you retire just like with an IRA. You also have a range of options so you can invest your HSA funds with as little or as great amount of risk as you're comfortable.

While the HSA insurance plans may only cover certain health care expenses, your Health Savings Account is more flexible. You can use the money in your HSA for dental checkups, prescriptions, contact lenses, and much more.

To see whether an HSA will save you money, you can learn more about the choices available with the online resources on our website. As the leading online experts specializing in Health Savings Accounts, we've amassed resources to help you choose an HSA administrator, select your qualified HSA health insurance plan and more.

Posted by Wiley Long at 01:36 PM | Comments (0)

September 26, 2010

Health Savings Accounts Still Offer Great Value

With only minimal impact on Health Savings Accounts, health care reform has not dampened enthusiasm for these tax-advantaged plans. "Health plans with Health Savings Accounts offer protection and a tax-free way to invest - all at a cost that usually is less than what purchasers would pay for a lower deductible plan," according to Scott Krienke, senior vice president of Assurant Health, one of the first companies to offer Health Savings Accounts.

Just two changes will effect Health Savings Accounts in 2011. Non-prescription over-the-counter medications, such as aspirin, will no longer be eligible for payment or reimbursement from a Health Savings Account (HSA).

If you do use your HSA funds for anything other than qualified expenses, the tax penalty on such withdrawals increases from 10 percent to 20 percent in 2011.

Otherwise, these tax-favored savings accounts for paying medical expenses will remain basically the same. To see how much you could save by switching from a low-deductible plan to a high-deductible health insurance plan combined with an HSA, visit HSA for American. More than eight million Americans are already enrolled in HSA Plans that helps both individuals and families keep their health care costs down.

Posted by Wiley Long at 11:13 AM | Comments (0)

September 23, 2010

Health Savings Accounts Work for Small Businesses

Small business owners are seeing how combining high-deductible health insurance plans with a health savings account (HSA) can cut their health care costs.

What Are Health Savings Accounts?

These are special savings accounts that work with specific high-deductible health insurance plans, which work just like any other health insurance plan. The advantages come with the HSA.

When you withdraw from your HSA for qualified medical expenses, you can deduct those expenses from your taxable income to reduce the tax payment you owe. If you don't need all the funds for health care costs, your account balance will grow with tax-deferred interest (you don't have to pay taxes on that interest) until you turn 65, just like with an IRA.

Health savings accounts offer attractive alternatives to many people. For example, with insurers dropping maternity riders, women who own their own business need an HSA to help with pregnancy costs.

The number of banks, credit unions and other institutions that provide health savings accounts is continually growing. You'll want to comparison shop to find an HSA administrator with low fees and high interest rates. To get the best information about how to get the most out of your HSA, visit HSA for America. As the leading online experts on the advantages of an HSA, our website has a wealth of valuable information.

Posted by Wiley Long at 11:29 AM | Comments (0)

September 20, 2010

Consumer-directed Health Plans See Jump In Enrollment

Studies show that more consumers are choosing consumer-directed health plans (CDHPs). According to the American Association of Preferred Provider Organizations (AAPPO), CDHP enrollment rose to around 23 million people in 2009 compared to 18 million in 2008. That shows an increase of 27 percent.

This growth was led by small employers. According to the president and CEO of AAPPO, Karen Greenrose, “At a time when employers are faced with the difficult choice of limiting benefits or raising health care costs to their employees, they are turning to Health Savings Accounts given the cost savings inherent in these HSA plans.”

While employers seem to prefer CDHPs with health savings accounts, employees are more likely to enroll in CDHPs with health reimbursement arrangements or HRAs. Employer contributions are required with an HRA, but employers may also contribute to their employees' health savings accounts.

To see how much you can save with an HSA, visit www.HSAforAmerica.com. You'll find information on selecting high-deductible health insurance that works with an HSA, how to find an HSA administrator and how to maximize your HSA benefits.

Posted by Wiley Long at 07:41 AM | Comments (0)

September 14, 2010

Health Savings Accounts: What You Need to Know Before You Enroll

Employers are moving away from full-replacement benefits toward offering high-deductible health plans to save on their benefit expenses. That makes it more likely that you'll need to understand how to make the most of a Health Savings Account sooner rather than later.

Health Savings Accounts are both savings and investment accounts for medical expenses. Health Savings Accounts work with a high-deductible health plan that typically carries a minimum deductible of $1,200 for an individual and $2,400 for a family.

Here's how it typically works. You enroll in a high-deductible health insurance plan and open a tax-free Health Savings Account at most any bank. You or your employer can contribute tax-free to this savings account, and you can use the funds to help with out-of-pocket medical expenses to offset the high deductible.

If you change jobs or lose your job, all the funds are yours to keep. The balance will keep rolling over from year to year. That's a big difference between an HSA and a Flexible Spending Acccount (FSA). With an FSA, you lose everything still in your account at the end of the year.

Since high-deductible insurance plans seem to be here to stay, why not make the most of their lower premiums and partner them with a health savings account that gives you tax-free interest while making healthcare expenses tax-deductible? HSA for America has a virtual online library that can save you a lot of time by showing you how to set up everything.

Posted by Wiley Long at 10:52 AM | Comments (0)

September 07, 2010

Are Health Savings Accounts The Future of Healthcare?

Health Savings Accounts represent a part of successful healthcare reform that began back in 2004. These accounts offer tax-deferred growth, like an IRA, combined with tax deductions for healthcare expenses. As long as you can have a qualifying high-deductible health insurance plan, you save pre-tax dollars to cover your anticipated healthcare costs.

With both tax-free interest growth and tax deductions for healthcare costs, health savings account (HSA) plans have continuously grown in popularity. Some of their appeal derives from the low premiums of qualified health insurance plans as compared to the premiums of plans with standard deductibles.

Fortunately, healthcare reform has done little to dissuade people from taking advantage of HSA plans. The new law no longer allows HSA distributions to be used for over-the-counter medicines like aspirin, but insulin and prescribed drugs are still qualified withdrawals. The bigger change is related to the tax penalty on disallowed withdrawals. Those will incur a 20-percent additional tax penalty as of January 1, 2011 rather than the current 10-percent penalty. Just use your HSA for qualified expenses and you don't have to deal with a penalty anyway.

Health savings accounts will continue be an integral part of healthcare reform by encouraging savings with tax-deferred earnings and by making healthcare expenses tax deductible. To learn why HSA plans continue to grow in popularity, you can read all about their lower premiums, tax advantages and long-term saving potential at HSAforAmerica.com.

Posted by Wiley Long at 10:02 AM | Comments (0)

September 01, 2010

Health Savings Account Deposits Top $1 Billion for Single Bank

United Health Group Inc., now one of the Twin Cities’ largest banks, has seen its OptumHealth Bank top the $1-billion mark for deposits on its books, and it's all due to Health Savings Accounts. By the end of June, its Health Savings Account deposits were at $1.025 billion. Chartered in Salt Lake City and part of Minnetonka-based UnitedHealth, UnitedHealth has helped thousands of employers to set up Health Savings Accounts for their employees.

There is a growing trend for employers to offer employees these tax-advantaged Health Savings Accounts in combination with high-deductible health care plans. The HSA plans typically keep premiums low, and employees can make tax-deductible withdrawals to pay for qualified medical expenses.

When Congress passed the Medicare Modernization Act in 2003 that allowed tax-exempt deposits and withdrawals for medical expenses for the first time. UnitedHealth opened its first Health Savings Account the very next year in order to simplify health care for its customers. The surprise is that UnitedHealth, with more than $1 billion in deposits, doesn’t even handle retail banking.

To keep you up-to-date on the future of HSA Plans, HSA for America maintains extensive resources to aide in establishing Health Savings Accounts and daily news updates at HSAforAmerica.com.

Posted by Wiley Long at 12:31 PM | Comments (0)

August 26, 2010

Can A Health Savings Account Help You Bridge Employment Gaps?

Health Savings Accounts may have been stifled by complex regulations, but these accounts can do much more than just turn your healthcare bills into tax deductions. With unemployment a constant threat, health savings accounts help people maintain coverage between jobs, and even into retirement.

Anyone under 65 can start a Health Savings Account once they buy a qualified high-deductible health insurance plan. That's an insurance plan with a deductible of at least $1,050 for individuals or $2,100 for families. These plans mush also have a limit of $5,250 for an individual and $10,500 for a family on their out-of-pocket costs.

HSA Plans have a great advantage over flexibility spending accounts for medical expenses because, unlike flexible spending accounts, HSA contributions and gains roll over from year to year. Any funds not used annually in a flexible savings account are lost at yearend or when employment ends. All withdrawals from a Health Savings Account must be for qualified healthcare expenses otherwise you face a penalty of 10 percent.

Health Savings Accounts are completely independent of employment so these funds can be used as a “safety net” when jobs are lost, or workers move to new jobs. After retirement, these accounts also offer another investment option with tax deductions on contributions, tax-free growth and tax-free withdrawals to pay for healthcare costs. There's just one caution once you retire: withdrawals to pay for something other than qualified healthcare expenses are still taxable after age 65.

To find out more about how HSA plans differ from flexible spending accounts, visit our website for information about health savings accounts and the high-deductible insurance plans that are qualified to work with them.

Posted by Wiley Long at 10:03 AM | Comments (0)

August 23, 2010

Health Savings Accounts: Why Have Ten Million People Enrolled?

As of January 2010, ten million Americans already have a Health Savings Account (HSA) and this form of tax-advantaged saving to pay medical expenses has only been available since 2004. Why are these plans growing so fast?

The number of people enrolling in a Health Savings Account increased by 25 percent since 2009. The fastest growing market for HSA plans was for large-group coverage, followed by small-group coverage. Thirty percent of those with an HSA were in the small group market, and 50 percent were in the large-group market.

Another 20 percent were individuals who paid for their own health insurance coverage. There are now 2.1 million people who have enrolled in HSA plans who pay for their own coverage.

You can learn more about Health Savings Accounts, the high-deductible insurance plans that work with them to keep premiums low, and how to reduce your taxable income with online resources on our website.

Posted by Wiley Long at 10:03 AM | Comments (0)

August 14, 2010

Health Savings Accounts: Why Are Customers Investing Record Amounts In Them?

J.P. Morgan Treasury Services manage more than 530,000 health savings accounts for people who have deposited a combined total of approximately $800 million nationwide. Health savings accounts are growing so fast because they allow individuals to save tax-free to pay their future medical bills.

At the end of 2009, 45 percent of J.P. Morgan's health savings account (HSA) customers held more than $1,000 in their accounts. That represented a 10 percent increase from the previous year.

The percentage of accounts that held more than $2,000 also went up from from 20 percent to 31 percent during that same time period. Last year, more than half (68 percent) of these HSA owners added more to their health savings accounts than they spent every month.

Health Savings Accounts have become integral to the effort to encourage us to become better healthcare consumers. These tax-advantaged accounts can be paired with certain qualified high-deductible health policies that keep premiums low by requiring individuals to pay the first $2,500 and families to pay the first $5,000 of their medical bills. Employers and employees can both contribute to an HSA tax-free, and those deposits can be used to pay for medical expenses until the deductible is met.

As long as health savings account funds are used for HSA qualified medical expenses, no taxes are paid. On Jan. 1, the penalty for withdrawing health savings account funds for non-medical purposes will be increased to 20 percent. Once you turn 65, you can withdraw without facing any penalty, pay the taxes and you're free to use your health savings account balance for any purpose. If you want to learn more about the advantages of health savings accounts, check out our website for breaking news links, strategies to set up an HSA and tips to get the greatest value from your HSA.

Posted by Wiley Long at 10:28 AM | Comments (0)

August 08, 2010

High-deductible Health-insurance Plans Attract Employers

Despite mixed reviews, the high-deductible health plans that typically keep premiums low and their linked health savings accounts are becoming increasingly popular with employers. With only minor changes from new healthcare laws, it's still cheaper for employers to provide HSA Plans to employees than to provide comprehensive health coverage.

HSA plans were created by a 2003 law that linked Health Savings Accounts to qualified high-deductible health insurance plans. HSA Plans allow people to increase savings with tax-free interest, and use the savings to cover deductibles and other medical expenses. Both employers and employees can deposit into these accounts, but the funds belong soley to the employee. That's very different from flexible spending accounts. With those, employees lose everything in the account they haven't used at the end of the year or whenever their employment ends.

The new healthcare laws did change the defininition of qualified healthcare expenses. As of January, you will not be allowed to purchase over-the-counter medications (aspirin, cold rememdies, etc.) with Health Savings Account funds unless a doctor prescribes these. Using a Health Savings Account for unqualified expenses will incur a 20-percent penalty, and that's double the earlier 10-percent penalty.

This change may be in response to a 2008 Government Accountability Office report that concluded the average household income of those with Health Savings Accounts was about $139,000. As a whole, taxpayers' average household income is only about $57,000. It seems that primarily higher-income households benefit from HSA Plans. Still, more employers are offering HSA Plans in attempts to replace comprehensive health insurance plans. Almost half of all companies with over 10,000 employees have already done so, and small-business owners are offering HSA Plans as well.

The new healthcare laws have also affected insureres. When nHealth of Richmond went out of business, it blamed new requirements that insurers spend 80 to 85 percent of the premiums they collect on clinical services and quality measures, or give customers rebates. News reports have suggested this claim was intended to obscure the fact that the company that was losing money before new regulations. Now, there may be fewer insurers in that area to offer HSA-compatible plans.

Posted by Wiley Long at 11:25 AM | Comments (0)

August 05, 2010

Health Savings Accounts: Do They Work With Low-cost Plans?

High-deductible health insurance plans, in general, offer lower premiums in exchange for the insured accepting part of risk. They agree to pay for their healthcare costs upto an annual deductible. In effect, they are putting a cap on their out-of-pocket expenses. The high-deductible health insurance plans that are qualified to be combined with Health Savings Accounts also offer lower-cost premiums.

Leading insurance companies (such as Assurant HSA and Golden Rule HSA) have rate guarantees for up to three years. That enables you to lock in premium rates long-term. Most plans inevitably raise rates so this can give you an advantage. If premiums do decrease, you can still move to a better HSA plan when it becomes available, as long as your health allows you to change plans without medical underwriting concerns over pre-existing conditions.

With much of healthcare reform still being decided, it may pay to lock in the HSA plans and the rates you like now. If the situation changes, you'll have the plan you preferred and you can still change should a better deal come to market.

Posted by Wiley Long at 12:54 AM | Comments (0)

August 02, 2010

Health Savings Accounts Work like Checking Accounts

If you’re worried that any savings account that lets you earn tax-free interest while making healthcare expenses tax-deductible has got to have a lot of complicated rules, here's what you need to know.

Health Savings Accounts are so popular because they are user-friendly and they don't nickel-and-dime you with add-ons. Some accounts include free starter checks, free Internet access for ACH electronic transfers and free debit cards. You don’t even have to maintain a minimum balance.

A Health Savings Account (HSA) can help you reduce your taxable income, and still give you tax-free interest like an IRA. Unlike flexible spending accounts where you lose all funds not used by yearend, your HSA funds just roll over from year to year to keep growing faster than most savings accounts with tax-free interest.

At HSA for America, you can learn more about the best way to get started with their convenient online HSA How To Guide. Their experienced Personal Advisors are also available at no cost to answer your questions. Just call HSA for America at 866 749-2039 and they'll be happy to set up a convenient time to discuss your questions.

Posted by Wiley Long at 10:34 PM | Comments (0)

July 21, 2010

Health Savings Accounts Are Still Popular after Healthcare Reform

All the recent changes in health care haven't reduced the popularity of Health Savings Accounts. In fact, employers are offering Health Savings Accounts more often as a less expensive way to cover employees. According to America’s Health Insurance Plans, more than 10 million individuals enjoy the tax-free interest and tax-deductible healthcare expenses that come with Health Savings Accounts.

Why are Health Savings Accounts appealing to more people? With the rising cost of healthcare, the high-deductible health insurance plans that work with these savings accounts typically keep premiums low. Preventive care and wellness check-ups are not subject to a deductible, though, so it's still easy to get physicals and mammograms. These types of exams are usually covered at 100 percent and do not require any co-pays.

These high-deductible plans also limit your out-of-pocket expenses, such as $5,950 per year for an individual or $11,900 per year for a family. Both employees and their employers can contribute to a Health Savings Account, and contributions are pre-tax.

Some argue that high-deductible plans keep people from seeing a doctor very often, but internal studies from major private insurers such as UnitedHealthcare, WellPoint, Aetna, and Cigna indicate that people with high-deductible health savings accounts exhibit better health habits than many people with more traditional health insurance coverage.

If you want to see what a Health Savings Account (HSA) can do for you, visit HSA for America, or give them us call at 866 749-2039. With their years of experience, they are the "go to guys" for Health Savings Accounts and they're happy to answer your questions and help you enroll with no charge for their services.

Posted by Wiley Long at 09:53 AM | Comments (0)

July 15, 2010

Health Savings Accounts Offer State Tax Deductions

Health Savings Accounts can give you generous tax deductions on your Federal income tax, but what about your state income tax?

States choose whether they comply with Federal guidelines for Health Savings Accounts, but most states do offer deductions. You can check your state HSA deductions to see whether your state allows deductions for contributions to Health Savings Accounts.

In addition to tax deductions, Health Savings Accounts can help you save on insurance premiums because they are combined with high-deductible health insurance plans. High-deductible plans typically offer much more reasonable premiums.

To save even more, you can find Health Savings Account insurance plans with less than 100 percent coverage. Get answers to all your questions about saving with Health Savings Accounts at HSA for America. Get started with their How To Find an HSA Plan guide, or schedule a no-cost consultation with a Personal Advisor. Just call them at 866 749-2039to set up a convenient time (including evenings and weekends) for personalized service.

Posted by Wiley Long at 09:30 PM | Comments (0)

July 13, 2010

Health Savings Accounts Are More Popular Every Year

If you’re looking for a way to lower your monthly health insurance premiums, take a look at what millions of other people have been doing. According to the Employee Benefit Research Institute, the balances in Health Savings Accounts have grown rapidly in the past few years. Consumer-driven health plans, including Health Savings Accounts and health reimbursement arrangements, grew to $7.1 billion last year. That showed an increase of $835.4 million in the last three years.

The number of these accounts has increased from 1.2 million accounts in 2006 to 5 million in 2009. What makes these plans so popular? Health Savings Accounts work with high-deductible health insurance plans. With a high deductible, you typically get a policy that has lower monthly premiums.

People can take what they save in premiums and invest it in their Health Savings Accounts to earn tax-free interest. In addition, they can get tax deductions when they withdraw funds to pay for qualified medical expenses.

Visit HSA for America to learn all about the benefits of Health Savings Accounts and high-deductible health insurance plans. You can also compare plans with our instant online quote engine.

For personalized service, just call HSA for America at 866 749-2039to arrange a no-cost, no-obligation consultation with one of our licensed insurance agents. They can answer your questions, and help you compare HSA plans. Find out why millions of people have already invested in Health Savings Accounts.

Posted by Wiley Long at 09:19 PM | Comments (0)

July 09, 2010

Health Savings Accounts Now Benefit Ten Million Americans

Ten million Americans are enjoying the benefits of Health Savings Accounts, according to a census released this May by America’s Health Insurance Plans. That’s 25 percent more people than last year.

Health Savings Accounts, which can be combined with lower-cost, high-deductible health insurance plans, provide an important coverage option for families, and small businesses.

In the individual market, 2.1 million are enrolled in Health Savings Account (HSA) plans, while nearly 3 million are enrolled in HSA coverage in the small-group market, and almost 5 million have HSA coverage in the large-group market.

To learn why Health Savings Accounts are growing in popularity, visit us at HSA for America. You’ll see why both employees and employers favor Health Savings Accounts. We’ll show you how to get started with our convenient online HSA How To Guide.

Our experienced Personal Advisors are also available at no cost to answer your questions. Just call HSA for America at 866 749-2039 to set up a convenient time to discuss your questions, and we can help you sort through HSA Plans to see which fit your needs best.

Posted by Wiley Long at 07:15 PM | Comments (0)

June 11, 2010

Health Savings Accounts Still The Best Bet With Health Care Reform

If you’re still debating whether the benefits of a Health Savings Account (HSA) can help you, check out the tax deductions, tax-free earnings, and the lower premiums of insurance plans that are qualified to be combined with a HSA soon.

The new health care reform laws may change the shape of these HSA plans in the future, but if you lock in premium rates and other benefits now, you’ll be able to keep your favorite plan for as long as it is for sale.

It you get the one of the best HSA plans for your needs now, you can compare it to newer plans as they are offered. You’ll have the chance to trade up, or keep your favorite HSA plan and high-deductible health insurance plan.

To compare these plans now and in the future, you can use our instant online HSA quote engine. We also offer no-cost, no-obligation consultations with licensed insurance agents to help you compare plans. Just click here, or call HSA for America at 866 749-2039 to get answers to your questions and advice from the experts.

Posted by Wiley Long at 12:47 AM | Comments (0)

June 06, 2010

Health Savings Account Owners Can Cut Their Bills Down To Size

As the owner of a Health Savings Account (HSA), you’re looking for ways to save more of your health care dollars. Here’s an easy, risk-free way to get big savings on your medical bills.

Insurance companies and big corporations have the power to negotiate with doctors and hospitals. In some cases, they pay only a fraction of what the general public is billed for an identical procedure. That’s something the average individual has not had access to until now.

Just click here to register for medical bill negotiation. Any claim with a patient balance over $200 is eligible to be sent for negotiation. Your bill will be analyzed in their geographic database. If the charges are deemed to be excessive, a trained negotiator will contact the provider, and propose a discounted settlement. If successful, they charge a percentage of the amount saved on the bill. If there’s no savings, there is no fee! That’s why it’s RISK FREE.

This is just one of several ways HSA for America can help you save on your health care expenses. Check out our website for other ways To save, or give us a call at 866 749-2039. If you’re just setting up your HSA, one of our licensed insurance agents can act as your own Personal Advisor. With a no-cost, no-obligation consultation, we can help you compare plans, and take advantage of all the savings available.

Posted by Wiley Long at 01:32 AM | Comments (0)

June 01, 2010

Health Savings Accounts Continue to Grow in Popularity

If you’ve decided this is the last year you’re going to let tax-deductions for your healthcare expenses slip away, check out Health Savings Accounts. A Health Savings Account (HSA) offers the tax advantages of tax-free interest, and tax deductions for health-related expenses.

To get started, choose the bank or trustee you want to administer your HSA.

You can find a list of HSA Administrators, as well as information on fees, interest rates, and investment options. If you want your money invested in an interest-earning savings account, choose one with lower or zero fees. You can also place your HSA funds with an administrator offering investment options.

There are three ways you can fund your HSA. You can contribute to your HSA only when you incur health-related expenses, and immediately withdraw funds to reimburse yourself. That way, you are making your health-related expenses tax-deductible. You can also fully fund your HSA, and let what you don’t need for health-related expenses grow tax-deferred. Another alternative is to fully fund your HSA, but pay your health-related expenses from a different account and reimburse yourself at a later date. This lets you maximize your tax deduction, and maximize the tax-deferred growth of your HSA. Check out Maximize Your HSA newsletter for more information.

At HSA for America, you can learn all about Health Savings Accounts, and take control of your health-related expenses. Like a more personal approach? Just call our Personal Advisors at 866-749-2039 to schedule a no-cost consultation. Our experts have worked with HSA plans for years, and are happy to answer your questions about how a Health Savings Account can save you money.

Posted by Wiley Long at 10:40 PM | Comments (0)

May 20, 2010

Health Savings Accounts Win with Employers

As an employer, you know the value of protecting your employees’ health. When you figure in the cost of hiring and training, even to temporarily keep up the work flow while employees are out with an extended illness, employee health impacts the bottom line.

With the high-cost of health insurance, employers have sought alternatives, such as consumer-driven health plans. A few employers have offered both Health Savings Accounts and Health Reimbursement Arrangements (HRA), but Health Savings Accounts are winning by a landslide in popularity.

In the last few years, the number of employers offering a Health Savings Account (HSA) grew from 48 to 56 percent. The number of employers offering HRA fell from 43 to 35 percent during the same period.

Health Savings Accounts have worked for employers with as few as two employees, and for large corporations with more than 100,000 employees. The best HSA plans are designed to be easy for employees to understand and to use. These plans often have 100-percent coverage for preventive care services. That helps keep employees on the job and productive.

To learn why Health Savings Accounts are the number one choice, visit us at HSA for America. You’ll see why both employers and employees favor Health Savings Accounts, and find links to HSA Resources with online applications for your convenience, and excellent support for employer groups.

Posted by Wiley Long at 10:28 PM | Comments (0)

May 12, 2010

Health Savings Account Owners Save with Unique Discounts

Health Savings Accounts are known for tax-free interest, and tax deductions for health-related expenses. These accounts are even known to be combined with the lower-cost premiums of high-deductible health insurance plans. The biggest secret about these savings accounts may be the other unique ways you can save money with your own Health Savings Account (HSA).

To get those lower premiums, HSA owners have high deductibles, and pay for their own medical bills until their deductible is met. They can take advantage of no-cost bill negotiation services to lower their medical bills.

Before paying a medical bill, you can submit it to our negotiation service. If we can negotiate a reduced bill for you, you keep 70 percent of the savings! If our negotiations don’t reduce your bill, you pay us nothing.

With a high-deductible insurance policy, you may also pay for some of your doctor office visits. To help you save on these, we have negotiated real-time access to licensed physicians by phone, and by email. Use our free consultation services to be sure when you really need to pay for an exam or treatment. You’ll probably get more advice using this alternative than you would if going to a doctor’s office were your only option for health care advice.

Learn more about these ways to save and other benefits at HSAforAmerica. We offer a selection of different types of insurance to protect your health and your dreams, but we’re not a big corporation. When you call us at 866 749-2039, you won’t be shuffled into a phone bank. You can discuss your needs with a licensed insurance agent who will become your own Personal Advisor for as long as you’re a client. Schedule a no-cost consultation, or use our How To Use an HSA Guide at your convenience to start saving more of your health care dollars today. Now, you have a friend in the insurance business.

Posted by Wiley Long at 11:48 PM | Comments (0)

May 06, 2010

Health Savings Accounts Help You Get Your Money’s Worth

With the new healthcare reform legislation, not only will more people be protected by medical intervention, but the quality of medical treatment will also improve. The U.S. Health and Human Services Department will have two years to set penalties on hospitals with high readmission rates. That will encourage hospital staff to be sure you’re healthy enough to leave the hospital when you’re released. In other words, you’ll get your money’s worth.

Health Savings Accounts can also help you get your money’s worth by allowing you to earn interest free from taxation. You can deduct more of your health-related expenses from your taxable income, and lower your taxes with a Health Savings Account (HSA).

The healthcare reform legislation will also help you get the most for your healthcare dollars by requiring insurance companies to reveal how much of members’ premiums they spend on medical care, as opposed to executive salaries or other administrative costs. Next year, insurance companies will owe their customers a rebate if the insurers spend less than 80 percent on benefits for people in individual or small-group plans.

With health insurance and Health Savings Accounts becoming better values, it’s time you learned how you can benefit from a HSA insurance plan. You can use our “How To Use an HSA Guide,” or schedule a no-cost consultation with an independent licensed insurance agent. At HSA for America, you can find a wide range of insurance because we’re independent agents. Since we’re not bound to one company, we can look for the best plan from different companies to protect your health and your dreams. Call us at 866 749-2039 to schedule a no-cost consultation with your own Personal Advisor who you can rely on for as long as you’re a client.

Posted by Wiley Long at 01:55 PM | Comments (0)

May 02, 2010

Health Savings Accounts Are More Valuable after Healthcare Reform

With the new healthcare legislation, insurance companies will be extending protection to more people. Insurers will be required to protect children with pre-existing health problems within the first year of the legislation, and must permit parents to keep their children on the parents’ insurance plans until children reach age 26.

With a Health Savings Account (HSA), you can take a tax deduction for withdrawals from your HSA to pay for health-related expenses not just for yourself and your spouse, but also for your children and any family member. That’s true even if that person is not covered by your health insurance. All of these health-related payments can be deducted from your income to reduce your taxes.

The new legislation also prevents insurance companies from revoking coverage because of severe illness, and from limiting your annual or lifetime benefits. That will help you get back the value of all those insurance premiums.

With new health insurance regulation, high-deductible health insurance plans that work with Health Savings Accounts are a better value. See how a HSA can help you at HSA for America. You can use our HSA "How To Guide", or schedule a no-cost consultation. At HSA for America, we offer a broad range of different types of insurance to protect your health and your dreams, but we’re not a big corporation. Call us at 866 749-2039 to be assigned your own Personal Advisor who you can rely on for as long as you’re a client.

Posted by Wiley Long at 01:47 PM | Comments (0)

April 28, 2010

Health Savings Accounts Offer Discounts on Lab Fees and Much More

You may have heard that a Health Savings Account (HSA) offers tax benefits (including tax-free interest and tax deductions for health-related expenses), but did you know that HSA benefits can help you save on lab fees and prescriptions?

HSA for America can help you save up to 80 percent on lab tests, like blood tests and CAT scans. HSA for America clients and Website visitors have access to discounted pricing when they order tests, and go to the closest participating lab to have the tests run. Results are usually available within 48 hours.

To help lower your prescription costs, HSA for America has a Prescription Drug Discount Card that you can download immediately to receive savings of up to 75 percent at more than 54,000 national and regional pharmacies. Participating pharmacies include BI-LO, CVS Pharmacy, Drug Fair, Eckerd Drugs, Fred's Pharmacy, King Soopers, Kmart, Publix, Rite Aid, Walgreens, Winn Dixie, and thousands of independent pharmacies.

To learn more about how Health Savings Accounts can help you take control of your medical expenses and take advantage of money-saving benefits, visit HSA for America online, or call us at 866-749-2039 to schedule a no-cost consultation with your Personal Advisor. Our experts have worked with HSA plans for years, and can answer your questions about how a Health Savings Account can save you money.

Posted by Wiley Long at 01:42 AM | Comments (0)

April 25, 2010

Health Savings Accounts Offer Prescription Savings and Much More

If you’ve heard about the growing popularity of Health Savings Accounts, and want to learn more about they can save you money, HSA for America has online answers, and experienced Personal Advisors available at no cost. Just call HSA for America at 866 749-2039 to set up a convenient time to discuss your questions, and we can help you sort through HSA Plans to see which fit your needs best.

HSA for America also has more unique ways to help you save. Because HSA plans carry high deductibles, you may be paying for more routine doctor visits. HSA for America has negotiated a special arrangement for our members with Consult A Doctor to give members real-time access to licensed physicians by phone. Members can also email their medical concerns, and receive a physician’s response within hours.

With HSA for America, you’ll also benefit from free bill negotiation service similar to the negotiation power that insurance companies and major employers have to negotiate much lower prices than the general public gets. Before paying a medical bill, our members submit claims to our negotiation service. If we can negotiate a reduced bill, you keep 70 percent of the savings! If we are unable to negotiate a price reduction, you pay us nothing. HSA for America website visitors may sign up for bill negotiation at NO COST.

HSA for America is also proud to announce a special program called My HSA Rewards. When you shop with major retailers (including Barnes & Noble, Netflix, Starbucks, Target, and others), you will automatically earn cash rewards of 0.5% to 25% on qualifying purchases. All of your earned rewards accumulate, and can transfer to your HSA when the amount totals $50 or more. At HSA for America, we can help you be smart about how you handle your medical expenses. We’ll help you take advantage of all the money-saving tools (including savings on lab fees and prescription drugs) so you can reduce your annual medical costs, and have more money in your HSA to grow tax-free.

Posted by Wiley Long at 01:28 AM | Comments (0)

April 22, 2010

Health Savings Accounts Are the New IRAs

Health Savings Accounts share certain benefits with IRAs, and offer more health-related savings. Money you contribute to a Health Savings Account (HSA) grows in your account free from federal taxes, and most state taxes. HSA funds also remain free from federal tax when you withdraw them to pay for qualified medical expenses. If you withdraw HSA funds for non-medical expenses, you pay taxes on the amount withdrawn.

If you use HSA funds before you’re 65 for non-medical expenses, there is a ten percent penalty, which is similar to IRA rules. Once you’re 65, you can withdraw your HSA funds penalty-free for any reason, but you still pay income tax on the money withdrawn.

Because your HSA deposits that are not used to pay medical expenses grow without being taxed, Health Savings Accounts offer an advantage over many other forms of savings accounts. HSA investments can be placed in bonds, mutual funds, traditional savings accounts, or stocks.

To learn more about how Health Savings Accounts work, visit out website at http://www.Health--Savings--Accounts.com or call us toll-free at 866 749-2039. You can get assistance from our friendly and knowledgeable Personal Advisors, all of whom are licensed insurance agents. We can help you cut through the clutter, and find the plan that is best for you. We can assist you with the application, and keep you informed while it goes through the approval process. You’ll be able to discuss any questions with your Personal Advisor for as long as you remain a client.

Posted by Wiley Long at 01:13 AM | Comments (0)

April 17, 2010

Health Savings Accounts: Tax Deductions + Tax-free Interest

One way to save money on health insurance premiums is often overlooked. A survey by Guardian Life Insurance found that six years after Health Savings Accounts were introduced, only 59 percent of people surveyed had heard of them. Fifty-two percent were not even aware that contributions to a Health Savings Account or a HSA were tax deductible, and could reduce the amount of annual income subject to taxation.

Likewise, fifty-five percent of those surveyed did not know that withdrawals from Health Savings Accounts to pay for qualified medical expenses were not taxed. Even fewer people (40 percent) realized that, unlike flexible spending accounts, they could always keep a HSA even if they lost their job, changed jobs, or retired.

You can learn more about how Health Savings Accounts earn interest tax-free while still offering tax-deductions at HSA for America You’ll see how much you can invest in Health Savings Accounts, and what expenses can work as tax deductions for you. You’ll find a long-term savings chart there, along with an example of the total net savings for a family of four thanks to their HSA plan.

You can also ask questions at no cost and without any pressure just by calling us at 866-749-2039. Our experts have worked with HSA plans for years, and can help you select the Health Savings Account option that’s right for you.

Posted by Wiley Long at 08:47 PM | Comments (0)

April 13, 2010

Health Savings Accounts Equal Tax Deductions

A Health Savings Account (HSA) can equal more tax deductions because you can deduct a broad spectrum of health-related products and services purchased with funds from your HSA. These purchases can be for birth control pills, over-the-counter medicines, and vitamins that a doctor prescribes.

You can also deduct purchases for hearing and vision improvement, such as contact lenses, exams, and replacement insurance. Eye glasses, or laser eye surgery are also qualified. To aide with hearing, a closed-caption television decoder, hearing aides and their batteries, phone modifications, and special education are also qualified expenses.

Braces, crutches, handicapped car controls, a wheelchair, or home and vehicle modifications to accommodate a wheelchair are all qualified HSA purchases that can be deducted. Here’s a more complete listing of HSA qualified expenses.

If a Health Savings Account is right for you, it’s easy to compare HSA plans and apply online at HSA for America. If you have questions, you can consult with experts who have worked with these plans for years at no cost. When you call us at 866-749-2039, one of our HSA advisors can answer your questions, or schedule a conference time that’s convenient for you.

Don’t let any more tax deductions slip by without taking advantage of what a Health Savings Account can mean for you and your family.

Posted by Wiley Long at 08:40 PM | Comments (0)

April 05, 2010

Health Savings Accounts Make More Expenses Tax Deductible

A Health Savings Account (also called a HSA) allows you to take tax deductions for more expenses to reduce your taxable annual income. In addition to your own health-related expenses, you can take tax deductions for what you spend on health-related expenses from your HSA for your spouse and dependent family members.

If you’re under 65, you can open a HSA just like other forms of savings accounts. Unlike most savings accounts, though, Health Savings Accounts earn tax-free interest. If you don’t need to spend what you contribute to your HSA, you can let it grow until you need it for your retirement. And when you’re over the age of 65, there’s no penalty to withdraw money from your HSA.

You’ll need to combine your HSA with one of the high-deductible health insurance plans that are qualified to work with Health Savings Accounts. Your family members do not have to be covered under your insurance in order for you to take tax-deductions for what you spend on their qualified expenses. If you‘re covered by other health insurance, you can still keep your HSA. You just can’t have medical expenses paid both through your HSA, and other insurance.

To learn more about how you can use the tax advantages of a HSA, check out HSA for America. It’s simple to compare HSA insurance plans and apply online, but you can also consult with experts on Health Savings Accounts at no cost. You can call our expert advisors at 866-749-2039 to discuss which Health Savings Account options work best for your situation.

Posted by Wiley Long at 01:33 AM | Comments (0)

April 01, 2010

What Are the Tax Advantages of Health Savings Accounts?

A Health Savings Account (HSA) allows you to avoid federal income tax by saving up to $3,050 for singles, or $6,150 for families, in tax-deductible contributions to your HSA. There is no minimum deposit (it can be $0), but any deposit you make into your HSA by April 15th is considered an "above the line" tax deduction for the previous year's income taxes. This means that you get a federal income tax deduction for money you put in even if you take the standard deduction, and don’t itemize.

This tax deduction is available to everyone because there are no limitations on the amount or source of income. Plus, a one-time rollover from your Flexible Spending Account, Health Reimbursement Arrangement, or IRA is allowed.

If your employer makes a HSA contribution for you, it is “excluded” from income. That means it’s NOT subject to any income tax or FICA. In all but four states (Alabama, California, New Jersey and Wisconsin), contributions to a HSA are NOT counted as income so you can also take a state income tax deduction for your HSA contributions.

Learn how to choose the right High-Deductible Health Insurance plan with our online Health Savings Account “How To” Guide. It explains exactly how to view your quotes, compare features, and check the physician network so you get the plan that is best for your situation. Then, just click “Apply” to complete the process online in minutes.

Our HSA Info page also provides clear, detailed information on exactly how HSA plans work, how to calculate your tax savings, and how to withdraw money from your HSA tax-free. You may also call us at 866-749-2039, and our expert advisors will answer your questions at no charge.

Posted by Wiley Long at 01:26 AM | Comments (0)

March 29, 2010

Health Savings Accounts and Tax-subsidized Medical Expenses

Even though you receive a tax deduction when you contribute to a Health Savings Account (HSA), that money is still yours to spend tax free for qualified medical expenses. Because an HSA is paired with a High-Deductible Health Insurance plan, qualified medical expenses include any costs you incur from seeing a doctor, prescription drugs, or other expenses toward your deductible.

You can use your Health Savings Account to cover expenses that would not typically be covered by a health insurance policy. Such HSA expenses include alternative treatments, dental expenses, lodging and transportation related to health care, long-term care premiums, maternity expenses, mental and physical therapy, non-prescription medications like aspirin or cough syrup, preventive health programs, and special fees related to guide dogs, wheelchairs, etc.

Alternative treatments can include acupuncture, aromatherapy, Ayurvedic medicine, homeopathy, nutritional consultation, and traditional Chinese medicine. Mental therapy includes the cost of psychiatrists, psychoanalysts, psychologists, and psychotherapists. Physical therapy may include chiropractor services, hydrotherapy, and medical massage. Plus, an HSA can be used to pay these expenses for any spouse or dependent member of your family, even if they are not covered by your health insurance policy.

If you’d like to take advantage of these HSA benefits and learn about their other benefits, you can find out more on our website at www.Health--Savings--Accounts.com, or call us at 866-749-2039. Our expert advisors will answer your questions at no charge.

Posted by Wiley Long at 11:45 PM | Comments (0)

March 26, 2010

Health Savings Accounts Can Lower Your Taxes

Health Savings Accounts can help you pay less income tax by reducing your annual adjusted gross income. According to the federal government and all but four states (Alabama, California, New Jersey and Wisconsin), contributions to a Health Savings Account (HSA) are not counted as income to the recipient.

You can invest the money you save in taxes in your HSA. Your HSA balance will grow quickly, too, because it earns tax-free interest like an IRA. Your employer can also contribute to your HSA.

Health Savings Accounts are paired with high-deductible health insurance plans, which have lower monthly premiums than typical health insurance plans. Lower health insurance premiums can also help you save money each month – money you can invest in your HSA to grow your account balance.

Your HSA will be available to you for life, and it’s completely independent from where you work. If you don’t need the funds from your HSA now, you can let it grow until you need it to cover retirement costs, such as Medicare deductibles and long-term care costs. When you’re over the age of 65, there’s no penalty to withdraw money from your HSA.

At HSA for America, it’s EASY to compare HSA insurance plans, and apply online. Have questions? Call us at 866-749-2039, and one of our HSA advisors can answer your questions and help you select the HSA option that’s best for you. Start today to receive benefits from your Health Savings Account for years to come!

Posted by Wiley Long at 11:35 PM | Comments (0)

March 23, 2010

Health Savings Accounts Can Help You Save for Retirement

Health Savings Accounts have more benefits than flexible spending accounts, and can help you save for retirement. A Health Savings Account (HSA) earns tax-free interest like an individual retirement account (IRA). That helps your balance grow faster than funds in a flexible spending account, which does not earn tax-free interest.

Withdrawals from a HSA to pay for qualified medical expenses are tax-free, and most contributions to a HSA are tax-deductible. According to the federal government and all but four states (Alabama, California, New Jersey and Wisconsin), contributions to a HSA are not counted as income to the recipient. Employers can also contribute to employees’ accounts.

To set up a Health Savings Account, you need to buy a high deductible health insurance policy. In exchange for a high deductible, your monthly premiums cost less than premiums of other insurance plans. That’s because insurance companies do not have to pay for numerous small charges they would cover in other policies.

If you’d like to take advantage of these HSA benefits, and learn about their other benefits, you can learn more at www.Health--Savings--Accounts.com, or call us at 866-749-2039. Our expert advisors will answer your questions at no charge.

Posted by Wiley Long at 10:14 PM | Comments (0)

March 18, 2010

Health Savings Accounts Help Beat Rising Health Insurance Costs

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. A Health Savings Account (or HSA) offers many advantages, such as lower monthly premiums.

If you are in reasonably good health, you can select High Deductible Health Insurance that can be combined with an HSA. Your monthly premiums will be less, and any money you contribute to your HSA will earn interest tax-free so your balance will grow faster than if taxed. Your Health Savings Account contributions are tax-deductible, and withdrawals from your HSA to pay for qualified medical expenses are tax-free.

You have control of your Health Savings Account, but your employer may also contribute to it. As the account owner, you decide how to spend your money, and the types of investments you want to make your money grow. You take your HSA with you if you change jobs, are unemployed, or retire. Any unused balance rolls over year after year to continue earning tax-free interest.

If this sounds like just what you need, you’re not alone. The second largest bank in the U.S. added 115,000 new Health Savings Accounts last year, and those HSA owners deposited $220 million into those Health Savings Accounts. That brought the total number of Health Savings Accounts at a single bank to 500,000 accounts holding a combined balance of $740 million.

It’s easy to learn more about Health Savings Accounts and apply online at http://www.health--savings--accounts.com. But experts with years of experience with HSA accounts will answer your questions at no cost when you call us at 866-749-2039. As with any retirement account, the sooner you act, the sooner you start to save.

Posted by Wiley Long at 12:37 PM | Comments (0)

March 15, 2010

Health Savings Accounts Help Small Businesses

According to The Wall Street Journal, large enterprises spend about $6,000 for each employee every year for health coverage, and almost half of U.S. small businesses offer no health insurance benefits at all.

With ever escalating costs for health insurance, Congress has provided a new viable option for small businesses to help their employees in the form of Health Savings Accounts. How it that different from a typical group health insurance plan?

A Health Savings Account, often referred to as HSA, combines high-deductible health insurance plans with a savings account that's free of taxes for medical coverage purposes. A HSA plan can lower expenses for both small business owners, and their employees when it comes to health insurance. Most small business owners find that a HSA is a better alternative than the typical group coverage plan.

That’s because the high-deductible health insurance plans used with Health Savings Accounts have lower monthly premiums, contributions to a HSA are tax-free (contributions are not included in gross income), and withdrawals from a HSA to pay for qualified medical expenses are also tax-free.

It’s easy to compare HSA plans and apply online on our website. However, we also understand how Health Savings Accounts work, how much you can deposit, and how you can take advantage of tax savings. We’ll explain your options, and help you find the best plan to meet your needs when you call us at 866-749-2039.

Posted by Wiley Long at 12:36 PM | Comments (0)

March 12, 2010

Health Savings Accounts Help You Save Money

In this economy, saving money takes creative new strategies. If you’re reasonably healthy, a Health Savings Account (or HSA), can help you save in multiple ways.

First, you typically pay less in monthly premiums for High Deductible Health Insurance that is qualified to be combined with a Health Savings Account. Second, your contributions to your HSA plan (up to $6,150 for families in 2010) are tax deductible, and you pay no tax on withdrawals for qualified medical expenses.

Paying for qualified medical expenses from your HSA is easy, too. You HSA Administrator will provide you with a checkbook or debit card that is linked to your account. You can also pay for healthcare out of your pocket, and pay yourself back from your HSA. Just keep receipts to prove that the expenditures are legal. If you don’t need funds in your HSA to pay for medical expenses, the money will be there for you when you retire much like an IRA.

You can find out more about Health Savings Accounts and apply online at http://www.health--savings--accounts.com.

Have any HSA related questions? Experts who have worked with Health Savings Accounts for years will answer your questions at no cost at 866-749-2039. You can join the hundreds of thousands of people who put their trust in Health Savings Accounts last year alone instead of waiting for government action.

Posted by Wiley Long at 12:35 PM | Comments (0)

March 09, 2010

A Health Savings Account Has Benefits Like an IRA

Health Savings Accounts offer a better way to manage health care costs with tax advantages that help you save. If you want coverage in case of a catastrophic major accident or illness that will leave you with overwhelming medical bills, a Health Savings Account is made for you.

A Health Savings Account is often abbreviated as "HSA", but it's typically called a health IRA in the financial industry. That's because a HSA works much like an IRA (Individual Retirement Account). When you set up a free HSA, you buy a High Deductible Health Insurance policy. If the deductible is $1,200, you pay the first $1,200 in medical costs before your insurance begins to cover charges.

In exchange for a high deductible, your monthly premiums cost less than premiums of other insurance plans. That’s because the insurance company does not have to pay for the small, frequent charges they cover in other policies.

In addition to lower monthly premiums, you’ll also get tax breaks. You can contribute a certain amount of money each year to your Health Savings Account just in case you have health-related expenses not covered by your insurance. If you need to pay for medical charges before your deductible is met, you’re covered with your HSA. If you don’t have expenses, you keep the money instead of paying it to an insurance company through higher monthly premiums.

In 2010, individuals can contribute $3,050, and families can contribute $6,150 to an HSA. Contributions can be made with pre-tax dollars through your employer, or you can take a tax deduction if you do pay for medical expenses with post-tax dollars. Anything you have left over at yearend rolls over to the next year. Year after year, your HSA balance keeps earning tax-free interest just like an IRA. When you retire, your HSA balance can be withdrawn like an IRA. You win whether you do or don’t have medical expenses.

That’s why the second largest bank in the U.S. added 115,000 new Health Savings Accounts last year, and those HSA owners deposited $220 million into their accounts with that one bank. That brought the total number of Health Savings Accounts at a single bank to 500,000 accounts holding a combined balance of $740 million. It’s easy to learn more about Health Savings Accounts and apply online at www.health--savings--accounts.com, but experts with years of experience with these HSA accounts will answer your questions at no cost when you call us at 866-749-2039. As with any retirement account, the sooner you act, the more you’ll save.

Posted by Wiley Long at 10:44 AM | Comments (0)

March 04, 2010

Health Savings Accounts Help If You Lose a Job or Retire

A Health Savings Account (HSA) can do more for you than help pay for health-care expenses with tax-free dollars. It also helps to bridge gaps in health insurance coverage if you lose your job, or when you retire.

If you're under 65, you can open a free Health Savings Account when you buy a qualified high-deductible health insurance plan. You can keep your HSA even when you're covered with other insurance policies if you don't have medical expenses paid by both insurance and your HSA, called "double dipping."

Employers may offer flexible spending accounts for medical expenses that allow employees to set aside pre-tax dollars for medical expenses not covered by the company's health insurance, including premiums and deductibles. While you own and control your Health Savings Account, a Flexible Spending Account is controlled by your employer. That means you lose all the money in your Flexible Spending Account if you leave that employer.

A Health Savings Account is yours to keep if you lose your job, change jobs, or retire. Your HSA will still be there for you to pay medical expenses whether you have a job or are unemployed. Your HSA can act like a "safety net" while you’re looking for work, or during those common 90-day trials on new jobs before benefits begin. All the while, your HSA balance grows with tax-free interest just like an Individual Retirement Account (IRA). Remember that Flexible Spending Accounts do not earn interest. Find out how a Health Savings Account can save you money at www.health--savings--accounts.com, or call our experts at 866-749-2039. They’ll answer your questions at no charge.

Posted by Wiley Long at 11:19 AM | Comments (0)

March 01, 2010

Health Savings Accounts Are in Greater Demand Than Ever Before

Chase (the nation’s second largest bank) reported significant growth in Health Savings Accounts. Chase added 115,000 Health Savings Accounts, and $220 million in related deposits last year. That amounted to 500,000 Health Savings Account (HSA) owners with combined account balances of $740 million. So many people are saving with a HSA because they understand this offers a better way to pay for current health expenses, and save for future qualified medical costs. HSA contributions are tax-deductible, and earn tax-free interest. You can also make tax-free withdrawals from a HSA to pay for qualified medical expenses. A HSA also helps you save through the associated lower premiums of High Deductible Health Insurance.

The benefits of Health Savings Accounts can be realized when you pay for health expenses, and while you save for future medical charges. Contributions to your Health Savings Account are tax-deductible, and earn tax-free interest. Withdrawals from your HSA to pay for qualified medical expenses are also tax-free.

With a Health Savings Account (HSA), you choose the types of investments you want to make your money grow. All unused funds left in your account at yearend will be carried over to the coming year - with no limit. An employer may contribute to your account, but you take your HSA with you if you change jobs, are unemployed, retire, or decide to change plans. That’s an important advantage with today’s high unemployment. Certain banks, including Chase, allow you to transfer funds from your checking or savings into your HSA through a secure website, and pay medical expenses online from your HSA.

To take advantage of these HSA plans, you need High Deductible Health Insurance that works with a HSA. These high-deductible plans typically have deductibles between $1,200 and $5,950 for individuals, or $2,400 and $11,900 for families. Best of all, they also usually have lower monthly premiums. It’s easy to compare HSA plans and apply online at our website, but experts who have worked with these plans for years are available, too. When you call us at 866-749-2039, one of our HSA advisors can answer your questions, and help you select the best HSA options for your situation.

Posted by Wiley Long at 09:38 AM | Comments (0)

February 24, 2010

Health Savings Accounts Can Lower Insurance Premiums

Health Savings Accounts offer tax deductions for medical expenses, but lower monthly premiums for health insurance may be the greatest advantage Health Savings Accounts offer. Premiums for group health insurance rose 9.6 percent last year, and more than 10 percent for each of the previous six years. Premiums for individual plans went up even more, while insurance premiums associated with Health Savings Accounts only rose a mere 3.4 percent last year. In fact, average premiums for High Deductible Health Insurance associated with a Health Savings Account (HSA) for individuals actually dropped 19.5 percent during the past two years.

Every time you fund your Health Savings Account (HSA), you get an instant tax-deduction, and your HSA earns tax-free interest. Once you have enough in your HSA to cover smaller medical expenses, you can buy High Deductible Health Insurance that has lower monthly premiums than most other types of health insurance. Put the money you save on premiums each month into your HSA, and you get to keep the money instead of an insurance company when you don’t have medical expenses. That’s why it’s called a Health Savings Account.

To take advantage of these Health Savings Account benefits, you need High Deductible Health Insurance that works with an HSA. These high-deductible HSA plans typically have deductibles between $1,200 and $5,950 for individuals, or $2,400 and $11,900 for families. Best of all, High Deductible Health Insurance usually has lower monthly premiums.

It’s easy to compare HSA plans and apply online, but our experts who have worked with these plans for years are also available to help you compare plans. When you call us at 866-749-2039, one of our HSA advisors can answer your questions, and help you select the best HSA options for your situation. The sooner you act, the more you'll save.

Posted by Wiley Long at 08:36 AM | Comments (0)

February 20, 2010

Is a Flexible Spending Account as Good as a Health Savings Account?

While Flexible Spending Accounts and Health Savings Accounts have some similarities, they also have important differences. Health Savings Accounts offer greater control, and more benefits.

While you own and control your Health Savings Account, a Flexible Spending Account is controlled by your employer. That means you lose all the money in your Flexible Spending Account if you leave that employer, but you can keep your investment in your Health Savings Account if you change jobs, become unemployed, or retire.

Money you deposit into your Health Savings Account is tax-deductible, and you decide how to invest it. The interest earned is tax-free while kept in the account, and the interest is not taxed when used to pay for healthcare expenses. Flexible Spending Accounts do not earn interest.

Withdrawals from your Health Savings Account used to pay for qualified medical expenses are also tax-free, and can be used for any healthcare related expenses, including health insurance co-pays and non-prescription medications. If you don’t spend the money you contribute to a Flexible Spending Account each year, you lose it at the end of the year. With Health Savings Accounts, all unused funds and interest are carried over from year to year.

At HSAforAmerica, we understand how HSA plans work, how much you can deposit, and how you can take advantage of these tax savings. We’ll explain your options, and help you find the best HSA plan to meet your needs with Health Savings Accounts.

Posted by Wiley Long at 12:51 AM | Comments (0)

February 16, 2010

Health Savings Accounts Save Money with Low-cost Health Insurance

Health Savings Accounts work with health insurance plans that have lower monthly premiums. Premiums for group health insurance rose 9.6 percent last year, and premiums for individual plans rose even more. Yet, insurance premiums for health insurance associated with Health Savings Accounts rose a mere 3.4 percent last year. Amazingly, average premiums for High Deductible Health Insurance associated with Health Savings Accounts for individuals actually dropped 19.5 percent during the past two years.

How is that possible?

With a High Deductible Health Insurance plan, the insurance company doesn’t have to pay for small, frequent charges they cover in other policies. In exchange for a high deductible, you pay less each month in premiums. If you have medical expenses before your deductible is met, you can pay for them with your HSA. If you have no expenses, you keep all the money in your HSA instead of spending it on higher monthly premiums. That money earns tax-free interest just like an Individual Retirement Account (IRA).

An HSA gives you more control over your expenses. It’s your to keep even if you can’t find work. It will grow faster because it earns tax-free interest even if you’re in a high tax bracket. You can’t lose it if you lose a job, change jobs, or retire. If you don’t need it to pay for medical expenses, it’s there for you when you retire much like an IRA. You can find out more about Health Savings Accounts and apply online at our website.

Have questions? Experts who have worked with these accounts for years will answer your questions at no cost at 866-749-2039. You can join the hundreds of thousands of people who have put their trust in an HSA last year alone.

Posted by Wiley Long at 09:29 AM | Comments (0)

February 01, 2010

How a Health Savings Account Can Help to Protect Your Finances

If you have health insurance, you might be surprised to learn that a starling 16.6% of American adults are still uninsured, despite the high degree of attention that has been given to health insurance issues in the U.S. lately. Many American adults without health insurance are put into a tricky situation when they have a catastrophic injury or illness and are then stuck with an expensive emergency room or ICU bill. According to many, living without health insurance is a high stakes gamble that too many Americans make every day.

However, there is hope for those Americans who either can’t afford traditional health insurance or don’t qualify for health insurance plans that suit their budgets because of existing health conditions. Health Savings Accounts are available to help Americans obtain low-cost health insurance and set aside money in a savings account that can be used to pay for healthcare expenses that are not covered by their health insurance plans.

Health Savings Accounts have grown steadily in popularity since they were first created in 2003. The primary role of Health Savings Accounts is to provide participants with health insurance protection in the event that they have a catastrophic illness or injury. Health Savings Accounts are used in conjunction with high-deductible health insurance plans that have low monthly premiums that are affordable for just about anyone.

In addition to the low-cost HSA insurance plan that is associated with the Health Savings Accounts, participants establish specific Health Savings Accounts, which are savings accounts, in a sense. These savings accounts are similar to an IRA, in that the funds that a participant deposits into the savings account can be invested into high interest-yielding stocks, bonds, and other investments to help grow the savings amount. Moreover, the funds that a person deposits into a Health Savings Account are tax-deductible, which means that those funds will reduce the person’s annual tax burden.

Some individuals who have Health Savings Accounts are able to save thousands of dollars each year as a result of their participation. Here are some of the ways that Health Savings Accounts can help participants to save money:

* Contributions to a Health Savings Account are tax deductable

* Funds withdrawn from Health Savings Accounts for qualified healthcare expenses are tax-free

* Investment earnings from the funds in the Health Savings Accounts are tax-free

* Participants keep the funds from their Health Savings Account even if they move, change jobs, become unemployed, change marital status, or change health insurance policies

* Participants are in control the amount of money saved in the Health Savings Accounts, including deciding when to use those funds for expenses, and how to invest the money

* Funds can be set aside and continue to grow to use for future medical needs

* Both individuals and employers can make contributions to Health Savings Accounts

HSA Administrators (Banks, credit unions, and other financial institutions) can help Health Savings Account participants set up their accounts. However, in order to qualify for participation in a Health Savings Accounts, participants should meet the following criteria:

* They must be enrolled in a qualifying high-deductible HSA health insurance plan

* They can only be covered under one health insurance plan

* They must not be listed as a dependant on a tax form

* Participants cannot have Medicare coverage

Contact us today for more information about how Health Savings Accounts can help to save you and your family a significant amount of money each year while ensuring that you receive the best possible health care coverage for your needs.

Posted by Wiley Long at 01:40 PM | Comments (0)

January 18, 2010

Health Savings Accounts Can be Used to Improve Financial Security

Health Savings Accounts can not only save you money on health insurance expenses now, but they can also serve as a vehicle to help you grow your retirement savings in a strategic way. Health Savings Account participants can use their accounts to help grow their savings tax-free (or tax-deferred). For many people, a Health Savings Account can serve as a second retirement account that will be available to help cover their medical expenses in addition to any other retirement expenses they may have.

Many people do not retire until the age of 65, as 65 is the age that they can qualify for Medicare health care coverage. As a result, many people work longer than they want to simply to get the health insurance benefits provided by their employers. By establishing a Health Savings Account, participants are able to set aside funds that they can use to pay for their medical expenses now or in retirement, helping to ensure their financial independence and security.

But just how much money should Health Savings Account participants have when they retire in order to cover their health care expenses (expected and unexpected)? According to Fidelity Investments, in 2006, the average couple retiring will need $190,000 to be financially comfortable paying for their retirement medical expenses. This figure is based on the average life expectancy for people who retire at age 65, which is 15 years for men and 20 years for women.

Some financial advisors believe that Health Savings Accounts are more important for an individual’s retirement security than IRAs and even 401(k) accounts. Health Savings Accounts allow individuals to withdraw money from their savings to pay for any expense, including medical expenses, but not limited to medical expenses. When withdrawing money to pay for qualifying medical expenses, individuals will not pay taxes on the withdrawal. However, individuals only pay taxes when they withdraw money to pay for non-medical expenses. Therefore, Health Savings Accounts are versatile and tax-friendly savings accounts that provide account-holders with flexibility they can use to their advantages.

It’s also important to note that if you do have an IRA as a retirement savings account, the funds that you withdraw from you Health Savings Account will not affect your annual IRA limit.

The tax advantages of a Health Savings Account are also extremely beneficial to many participants and help to save them a significant amount of money each year, which reduces an individual’s annual tax burden. Individuals over the age of 55 can contribute catch-up money as well. The amount of the catch-up amount changes each year, but that catch-up limit is also tax-deductible. If a couple shares a Health Savings Account, the couple can establish the Health Savings Account in the older person’s name so that they can contribute a larger sum of money each year once the older person turns 55. In other words, I both participants do not have to be over the age of 55 in order to take advantage of the catch-up limit increase.

One of the many advantages of Health Savings Accounts is also that they are self-directed, which means that participants are able to control how much money they contribute to their accounts each year, where that money will be spent, and how that money will be invested while it is in the Health Savings Account. Therefore, Health Savings Accounts help individuals to stay in control of many aspects of their health care management more effectively.

How to Increase Your Health Savings Account Growth

There are three simple strategies that Health Savings Account participants can use to improve the growth within their Health Savings Accounts:

1: Invest the funds from the Health Savings Account into a mutual fund or stock that has a high-interest yield. As with any investment, there is a degree of risk involved, so make sure that you are comfortable with your investments and with the risks.

2: Keep your funds in your account for as long as you can. Of course, you can withdraw your Health Savings Account funds at any time to pay for qualifying medical expenses – and those withdrawals will not be taxed – but the longer you leave your money in a high-interest yielding vehicle, the greater the funds will grow.

3: Contribute as much as you can as early as you can in the year. You have until April 15 to make a Health Savings Account deposit in time for tax season. However, if you fund it early, your money will grow tax-free for a longer period of time than if you funded it later. By contributing to your Health Savings Account on January 1 of each year rather than April 15, you can earn more than $40,000 in interest over 20 years and over $100,000 in interest over 30 years.

Health Savings Accounts Can Provide You With Funds You Can Use to Pay for Medical Expenses During Retirement

Health Savings Account funds can be used to pay for Medicare expenses, including Medicare premiums, deductibles, copays, and coinsurance. Many Medicare beneficiaries are responsible for paying for their own nursing home expenses, unconventional terminal illness treatments, and proactive health screenings. The only exclusion from the qualifying Medicare expenses list is Medigap insurance; you cannot use Health Savings Account funds to pay for Medigap policies.

Health Savings Accounts can also be used to pay for health care expenses that you may have even if you pay for your healthcare through an employee retirement plan. Health Savings Account funds can even be used to pay for long-term care assistance, and has maximum annual limits that change every year.

If you are interested in establishing your own Health Savings Account now, you’re taking the first step towards financial freedom and independence. In order to get started, you’ll need to open a qualifying high-deductible health insurance policy that is compatible with HSA plans. Speak with an experiences Health Savings Account advisor to learn more about which health insurance plans may be best for your specific health care needs or for more information about how Health Savings Account plans can help you establish better financial freedom for yourself and your family.

Posted by Wiley Long at 11:30 AM | Comments (0)

January 12, 2010

Seven Things to Know About a Health Savings Account

Health Savings Accounts are becoming increasingly popular savings accounts used to pay for qualifying medical expenses. Since they first became available in 2004, about 2.5 million Americans have opened a Health Savings Account. However, Health Savings Account plans may not be the best options for everyone. If you are thinking about enrolling in a Health Savings Account, here are seven things you need to know:

1. A Health Savings Account plan can reduce healthcare costs by an average of 40 percent for many participants.

While HSA plans can significantly reduce health care costs for many participants, some people will not achieve any significant net savings. Individuals most likely to save a great deal of money by enrolling in Health Savings Accounts are those individuals who pay their own health insurance policy premiums, which include self-employed individuals who are relatively healthy and have few medical expenses.

2. Health Savings Accounts help to restore participants’ freedom of choice.

An HSA plan gives control back to individual consumers when it comes to their health care choices and options. As a result of the increased control, HSA participants must also be more responsible for their own health care decisions. Being self-reliant and responsible for health care choices is not always the best thing for all consumers, especially those who may be more comfortable with HMO-type “co-pay” plans.

3. Health Savings Accounts reduce income taxes.

Every dollar that participants contribute to their Health Savings Accounts is deducted from taxable income in the same way that contributions into a traditional IRA can be deducted from income tax burdens. Additionally, interest from the Health Savings Account savings and from investments made through a Health Savings Account are tax-deferred, just like a traditional IRA. However, unlike an IRA, withdrawals from a Health Savings Account are tax-FREE when the funds are used to pay qualifying medical expenses.

Also, in many situations, new account holders can fund their Health Savings Accounts with the money they save on health insurance premiums from their prior traditional health insurance plan that have higher premiums than HSA insurance plans.

4. Participants must have a qualifying high deductible health insurance plan in order to enroll in a Health Savings Account.

Health Savings Account participants need to have a high deductible health insurance plan that qualifies for participation in a Health Savings Account – not just any high deductible health insurance account. If you have recently enrolled or are thinking about enrolling in a high deductible health insurance plan, it is important to make sure that your policy qualifies for Health Savings Account participation. You may want to work with a qualified health insurance policy broker who is experienced in identifying properly qualified Health Savings Account plans to be sure you open the right plan.

5. You must be insurable in order to qualify for the Health Savings Account - qualified health insurance policy.

If you do not already have a qualified high deductible insurance policy, you will need to switch your insurance policy plan in order to become eligible for a Health Savings Account. Unless your health insurance plan coverage is offered under small group reform laws through an employer, the high deductible policy will be individually underwritten by an insurance policy company. In some cases, “pre-existing” considerations may not be fully covered.

Alternatively, some health insurance providers may cover certain “pre-existing” conditions in exchange for slightly higher premiums. In some cases, health considerations will make an individual uninsurable (such as individuals with diabetes, Chron’s disease, or a history of heart attacks, etc.). Keep in mind that health insurance underwriting requirements vary by state, which is another reason to use the services of an experienced health insurance plan broker.

Also, keep in mind that you may not want to switch to a Health Savings Account plan when the management of existing medical expenses is more important to you than saving up-front medical insurance premiums. Also, it is advisable that you do not change health plans in the middle of ongoing medical treatments; after a significant health issue has been diagnosed; or if a covered family member is pregnant.

Generally, it is relatively hassle-free to qualify for a qualifying health insurance plan. Most insurance policy companies offering Health Savings Account coverage will issue the policy based on your answers to the health insurance application, which is sometimes accompanied by a follow-up telephone interview. In some cases, medical records may be requested by the health insurance policy provider. Moreover, some health insurance policy providers may require a health exam prior to providing the health insurance.

6. Although Health Savings Account health insurance plan premiums are low, they are not always as low as you might expect.

Health insurance premium rates may be higher than you expect, in some cases. Although qualifying health insurance plans have a “high” deductible, as required by law, the insurance company still must compensate for the financial it is assuming by charging premiums. Many health insurance companies offer health insurance policies with just “one deductible” limit that must be reached – and that all family members contribute toward. With these shard deductible plans, it is not uncommon for premiums for a $5,000 family deductible with 100% coverage after the deductible to be similar to a $2,500 “per person” deductible plan with 80/20 coverage after the deductible has been met.

Having lower health insurance premiums represent just one element of the lower net cost that is achieved with a Health Savings Account plan. In addition to these lower premiums, the low net cost of a Health Savings Account plan is achieved after factoring in the benefits of lower taxes, which are made possible by the tax-deductible contribution to the Health Savings Account. Thus, if finding a health insurance plan with the lowest possible premium is your main concern, you may wish to consider a high deductible, non- Health Savings Account policy, especially if you do not see the benefit to contributing to a tax-deductible savings account.

7. Health Savings Accounts offer your best chance to help control health insurance rate growths.

Even with the Health Savings Account policy, you will still see rate increases because your Health Savings Account-qualified policy is still a health insurance policy at heart. However, you can expect that the actual dollar amount of any future rate increases will be lower than traditional health insurance plans, such as regular PPO and HMO plans. This lower rate increase occurs because insurers base rate increases on percentages - and the same percentage of a lower base health insurance premium correlates to a lower dollar increase. Health Savings Accounts are not a health insurance or health care perfect solution-but it is the most cost-efficient solution for many qualified people.

Posted by Wiley Long at 09:46 AM | Comments (0)

January 10, 2010

How to Set Up a Health Savings Account; A Step-by-Step Guide

Health Savings Accounts provide an excellent way to save money and grow financial assets. Health Savings Accounts provide a vehicle for participants to make tax-deductible contributions into a personal savings account that can be used to pay for qualifying medical expenses.

In addition to the tax deduction participants receive for contributions they make to their Health Savings Accounts, the funds held within a Health Savings Account grow tax-free and can be withdrawn tax-free to pay for qualifying medical expenses. Therefore, participants often invest the funds within their Health Savings Accounts into high interest-yielding investments such as stocks and bonds.

Moreover, monthly premiums on HSA plans are typically much lower than other health insurance plans because Health Savings Account-qualifying plans are high-deductible plans. Lower premiums, coupled with the many tax-advantages, make Health Savings Accounts very attractive savings and financial growth options for many people.

Here’s what participants need to do to open their own Health Savings Accounts:

Step 1

Make sure that you are enrolled in a qualifying high-deductible health insurance plan that is compatible with Health Savings Accounts. Qualifying HSA insurance plans have an annual deductible that is higher than traditional health insurance plans. These plans must also have an annual out-of-pocket maximum. Additionally, Health Savings Account participants must not have been claimed as a dependent on another person's taxes during the previous year.

Step 2

You’ll need to choose an administrator for your Health Savings Account. By law, Health Savings Accounts must be managed by an independent third-party trustee – not by the health insurance company that issues your health insurance plan. Banks, credit unions, and some brokerage firms are generally offer Health Savings Account administration services.

Step 3

Gather together all of the required Health Savings Account paperwork. Health Savings Accounts are tax-favored accounts, so they must have certain information reported to the IRS each year by both the administrator and the account owner. Financial institutions will require some biographical information about the account holder as well as a taxpayer ID number such as a Social Security number.

Step 4

Complete all of the required the Health Savings Account paperwork. Don’t forget to sign it where required. Be sure to retain a copy of all Health Savings Account paperwork for your own records and return the original copies to your Health Savings Account administrator.

Step 5

Finally, you’ll need to deposit funds into your Health Savings Account. Contributions to your Health Savings Account can generally be made by check, bank transfer, and by wiring funds. For accounts held at a bank or brokerage firm where you already have a savings account, funds can usually be transferred between accounts. Be sure to keep records of all deposits, as Health Savings Account contributions are tax deductible in most cases.

For additional information, you can find a complete Health Savings Account How-To-Guide on our website.

Posted by Wiley Long at 09:33 AM | Comments (0)

December 22, 2009

Health Savings Account Balances Grew in 2009 1st Quarter

The average Health Savings Account balance in America has continued to grow each quarter, even as the national economy still faces slow economic conditions, according to the Health Savings Account Market Q1 – 2009 report from Canopy Financial.

Canopy Financial is a national vendor for consumer-directed health plan (CDHP) financial technology and electronic payment systems that are used by banks and managed care companies. During its research, the company found that the average individual Health Savings Account subscriber during the 1st quarter of 2009 was 42 years old and contributed $116 each month – a figure that is up from the average monthly contribution of $111 during the 4th quarter of 2008. Employer contributions also increased during the 1st Quarter in 2009 from $69 to $113 for individual Health Savings Account participants.

Family Health Savings Account participation was also evaluated and found to have increased in Q1; the family Health Savings Account enrollee was 45 years old and contributed an average of $239 each month – a figure that increased from an average contribution of $206 per month in the 4th Quarter of 2008. Employer contributions to family Health Savings Account plans increased to $266 from $133 in the previous quarter. The average ages for family Health Savings Account participants remained the same for each quarter.

“Consumers enrolled in CDH plans demographically are very similar to consumers of traditional health care,” noted Vik Kashyap, CEO of Canopy Financial. “Consumers are clearly using these accounts for saving towards long-term care needs and even retirement.”

Individual Health Savings Account balance averages in the 1st Quarter of 2009 were $960, which was an increase from $928 in the 4th Quarter of 2008 and from $697 for the 1st Quarter first-quarter 2008. Family Health Savings Account balances increased to $1,720 from $1,600 in the previous quarter and from $1,419 in 1st Quarter of 2008.

Kashyap says the trend in increasing balances is important; “The most significant thing we have noticed is that even in a recession economy, both employers and consumers continue to make contributions to and invest in CDH accounts, which supports the contention that CDH products have become a key/integral component of employer-sponsored health care, and that contributions in many ways mimic those made to 401(k)s in which people invest a little bit each month into these accounts in an effort to accumulate long-term wealth/funds for long-term medical needs.”

By comparison, average balances for Health Investment Accounts (HIAs) varied. While the average HIA balances for families increased by 5% to $10,681 in the 1st Quarter of 2009 from $10,178 in the 2008 4th Quarter, the average HIA balances for individual account holders dropped by 2% to $8,002 in the 1st Quarter of 2009 from$8,148 in the 4th Quarter of 2008.

When understanding the data his company collected, Kashyap points to the importance of the average dollar amounts invested in health investment accounts. “If you look at the report, I think these numbers would be surprising to most in both health care and financial services for how high these account balances on average are,” he said.

As savings increased, spending from Health Savings Accounts was down in 2009. The average monthly expenses for the 1st Quarter of 2009 were $81, compared to $83.54 from the previous quarter. The average monthly expenses for family Health Savings Accounts was $103, down from $108.19 the previous quarter. Hospital expenses contributed to the monthly expenses for both individual and family Health Savings Account holders. Other expenses included dental services, vision expenses, and lab/diagnostic tests.

“The most important take-away for employers is the dollar values held in both HSAs and HIAs, and the fact that their employees are using these accounts not only as savings vehicles for long-term medical expenses, but ultimately towards retirement,” said Kashyap. “Additionally, as their employees increasingly use these accounts to manage their health care expenditures,…they are becoming much more informed/empowered consumers of health care services, which will play a key role long term in reducing overall health care costs of an organization and the costs associated with managing employer-sponsored health care.”

Demand for CDHP that provide Health Savings Accounts is Expected to Rise

Kashyap predicts that there will be an increase in demand for healthcare solutions that offer Health Savings Accounts. “We expect to see not only more employers offering CDH products to their employees, but more employers/consumers demanding CDH products as their value in terms of reducing cost of health care, and as repositories for long-term wealth accumulation being increasingly apparent and prevalent,” he said.

Posted by Wiley Long at 10:39 AM | Comments (0)

December 20, 2009

Time to Enroll in a Health Savings Account for 2010

Health Savings Account participants will receive greater tax benefits than ever before in 2010, thanks to an increase in contribution limits. When Health Savings Accounts are coupled with qualifying high-deductible insurance plans, participants receive hundreds or thousands of dollars in savings each year, making Health Savings Accounts attractive options for many people seeking ways to save money and control health care costs.

"Everyone wants an insurance plan that has low or no deductibles and co-pays for office visits and prescriptions. What they don't realize is that they're paying a lot for those privileges," said Jeff Marshall, director of sales for the AVMA Group Health and Life Insurance Trust. Marshall also notes 25% of Trust participants have Health Savings Account-qualified health care plans.

"If they can afford to self-pay for the smaller things, it definitely behooves them to look at HSA-qualified plans, because the premium differential alone can often save thousands of dollars," said Marshall

To illustrate the savings potential of Health Savings Accounts, Marshall cited a recent example; his company worked with a Florida veterinarian who was looking for a cost-effective alternative to the health insurance coverage he had been enrolled in for years through GHLIT. After evaluating his current health insurance plan options, the veterinarian decided to switch to a Health Savings Account and high-deductible insurance plan through the Trust.

With the new plan, the veterinarian’s annual deductible limit and maximum out-of-pocket expenses increased, but the veterinarian's annual premiums were reduced by half. Ultimately, the veterinarian saves approximately $3,000 per year as a result of the switch to the HSA plan – and more healthcare services and products are covered by the Health Savings Account than by his previous healthcare plan. (See IRS Publication 502, www.irs.gov/publications/p502/index.html, for a list of HSA qualified medical expenses.)

"Premium savings can be invested using pre-tax dollars, up to the annual contribution limit, into an HSA and withdrawn tax free to defray the cost of higher deductibles, co-insurance, and qualified out-of-pocket expenses," Marshall said. "Plus, every dollar they put into that account reduces their taxable income, so it's a real savings vehicle."

The 2010 maximum contribution to Health Savings Accounts increases to $3,050 for individual coverage and $6,150 for those with family coverage. By comparison, the 2009 maximum contribution was $3,000 for individual HSA plans and $5,950 for family plans. Also, Health Savings Account participants aged 55 and older can contribute an additional $1,000 in 2010, which is the same as in 2009.

In addition to lower premiums and tax-free contributions, there are other benefits to enrolling in Health Savings Accounts. For example, many Health Savings Account participants can invest their funds into a wide variety of high-interest yielding investments, including mutual funds, stocks, bonds, certificates of deposit, and money markets. Furthermore, invested funds will grow tax-free for as long as they are in the Health Savings Account.

Health Savings Accounts also be valuable for individuals interested in retirement planning. For example, funds from Health Savings Account can be used to pay the premiums on qualified long-term care plans as well as Medicare premiums, deductibles, co-pays, and co-insurance, excluding only Medicare supplemental insurance and Medigap policies. Additionally, there is no penalty to withdraw Health Savings Account funds to pay for non-qualifying expenses (such as a non-healthcare expense) once a Health Savings Account holder reaches the age of 65 or older.

"The beautiful thing about Health Savings Accounts is that you're lowering your taxable income and your money can grow tax free until you need it," Marshall said. "Most important, you have more control because you're creating your own path for spending your health care dollars."

Individuals thinking about opening Health Savings Accounts should always speak with their accountants or tax advisers before opening the Health Savings Accounts in order to determine whether Health Savings Accounts provide the most advantageous savings potential and healthcare coverage option for their needs. Contact us today for more information about how we can help you get the best Health Savings Accounts for your budget and lifestyle or for more information about Health Savings Account programs in general.

Posted by Wiley Long at 10:33 AM | Comments (0)

December 11, 2009

Health Savings Account Potential: How Health Savings Accounts Could Help to Restore Michigan’s Fiscal Health

Business owners, lawmakers, legislators, and more have spent decades trying to find the perfect healthcare solution for Americans and their families. In fact, the Mackinac Center – a free-market public policy research center in Michigan - has recommended hundreds of reform ideas that could save billions of dollars and help to balance the state budget since 1988.

Currently, the state of Michigan continues to try to find the best solutions to balance the 2010 budget. In the face of these challenges, 2011 is already expected to run rampant with budget deficits and political drama, as the following year is an election year. These challenges promise to be greater than what the state has faced in regards to the last seven state budgets combined. However, one thing is certain: state legislators need to reduce the cost of state government as soon as possible.

One of the most promising solutions to reducing the cost of state government is to implement "Health Savings Accounts" and high-deductible insurance plans as the healthcare solution for government employees. Health Savings Accounts (HSA) are savings account into which participants or their employers deposit pre-tax money that will be earmarked to pay for a participant’s qualifying healthcare expenses. These accounts are accompanied by high-deductible insurance policies that are also called, "consumer-directed health plans," which cover many qualifying healthcare related expenses.

Funds from a Health Savings Account are used to cover qualifying healthcare expenses until the full amount of the health insurance plan deductible is met. Once the deductible is met, the health insurance coverage begins. A 2009 federal law requires that Health Savings Accounts deductibles for qualifying high-deductible insurance plans are least $1,150 for individual self-coverage and $2,300 for family coverage. There are also maximum deductible amounts associated with these accounts.

The benefits of Health Savings Accounts are abundant; as money is deposited into Health Savings Accounts, the money is reduced from the participants’ income tax burden. Those deposited funds then earn interest tax-free and can be withdrawn anytime to pay for qualifying healthcare expenses.

In the case of Michigan state employees enrolling in Health Savings Accounts, the savings can be huge for the state; high-deductible health insurance premiums are less expensive than health insurance premiums for more traditional health insurance plans, including PPO and HMO plans.

Participation in Health Savings Accounts is increasing at a profound rate! The AHIP Center for Policy and Research indicates that participation in HSA/CDHPs increased from 1 million in early 2005 to more than 8 million in January 2009. Moreover, in 2008, large-group Health Savings Account coverage increased by 35 percent and small-group Health Savings Account coverage increased by 34 percent.

The savings potential is significant when Health Savings Accounts are adopted. If one assumes that the state pays 100 percent of the insurance premiums and funds just 75 percent of the legally allowable contributions for each state employee, the state would see a first-year savings of $106 million and cumulative savings as high as $5.9 billion if the plans were used from now through 2021.

There would also be significant savings if the almost 209,000 full-time equivalent rolling public school employees transitioned to a state-administered Health Savings Account/CDHP. The upper-bound savings total could be as much as $451 million in the first year and $26 billion cumulatively through 2021. These estimates are based on expected PPO premium increases of 9.3 percent annually.

While it is true that transitioning state and public school employees into consumer-directed health care plans represents a significant shift in public policy, the potential should still be explored. After all, if nothing is done to address the drastically increasing health care costs, there will be an inevitable shift in public policy as well.

In most cases, employees stand to benefit a great deal through patient-centered Health Savings Account plans that they control. Amongst the milieu of advantages of Health Savings Accounts are predictable expenses for participants; the maximum out-of-pocket expense with Health Savings Accounts/CDHPs is firm, but with traditional insurance, co-pay amounts are unlimited.

While significantly changing state employee health care requires a great deal of effort and communication, Health Savings Accounts are truly beneficial for both employees and for the state. Furthermore, even though the process may result in a struggle over whether the Legislature or the Civil Service Commission is legally allowed to change the benefit structure for state employees, the result of such a shift may help to reinvigorate the state’s fiscal health for decades to come.

Posted by Wiley Long at 08:30 AM | Comments (0)

December 09, 2009

Five Ways a Health Savings Account Can Help YOU Save Money

Enrolling in a Health Savings Account is an excellent way to save a significant amount of money for you and your family. Here are 5 ways that opening a Health Savings Account can make a difference:

1. Health Savings Accounts have corresponding high-deductible insurance plans (HDHP). These high-deductible insurance plans have lower monthly premiums than “standard” insurance plans, which saves you money each month. Lower health insurance premiums = higher savings potential!

2. Keep your money working for you; when you reduce your monthly health insurance premiums, you’ll save a significant amount of money each month. By putting that saved money into your Health Savings Account, you’ll have control over how your money is used. Stop giving away extra money to health insurance companies and start keeping it for yourself and your family!

3. Health Savings Accounts reduce your annual adjusted gross income, which means that you’ll reduce your annual income tax burden. Pay less money in taxes by keeping your Health Savings Account contributions to pay for your own expenses!

4. Health Savings Account funds can be used to pay for HSA-qualifying health expenses that are not covered by your HSA insurance plan.

Plus, a) The money you withdraw from your Health Savings Account to pay for qualifying health expenses can be withdrawn tax-free. b) Paying for healthcare expenses from your Health Savings Account is simple: just use your Health Savings Account debit card! c) Health Savings Account cover many, “qualified” expenses that are not covered by you high deductible health insurance plans, including many dental services, over-the-counter medicines, prescription drugs, eye care needs, hearing aids, and so much more! You’ll save significantly on many health-related products and services.

5. Your Health Savings Account will be available to you for life. If you don’t use the funds from your Health Savings Account now, then let it continue to grow until you need it to cover retirement costs, such as Medicare deductibles and long-term care costs. Plus, there’s not penalty to withdraw money if you’re over the age of 65.

Simply put: Investing in a Health Savings Account is investing in your future. Opening a Health Savings Account can help you save money while growing your wealth and creating a strong financial future. Start today to receive benefits from your Health Savings Account for years to come!

Posted by Wiley Long at 02:15 PM | Comments (0)

December 07, 2009

The Alternative of Health Savings Accounts

More people than ever are choosing Health Savings Accounts. This is good news for the healthcare consumer. Everyone benefits when the country is given more choice when it comes to their healthcare. Health Savings Accounts let you work out a financial plan that works best for your specific needs and decide how to manage your own medical needs.

An added benefit of Health Savings Accounts is making the price of medical care more affordable for everyone, and the prospect of lowering the nation's rising healthcare costs.

So how can revamping the current health insurance system affect healthcare from a financial standpoint?

More to the point, how can a different kind of health insurance make it easier for most people to pay for required medical expenses?

In 2003 the Medicare Modernization Act introduced the concept of HSAs to the American public for the first time. A Health Savings Account is meant to encourage people to invest in their own healthcare through personal savings, and reduce health care costs at the same time; a revolutionary idea that has the potential to be the starting point for positive changes in healthcare. Health Savings Accounts have sparked a lot of debate amongst those who believe in the idea and those who are wary of its ability to change the face of healthcare as we know it.

When you get down to the fundamentals, Health Savings Accounts are truly designed to improve healthcare and make it accessible to the vast majority of people. For the individual, Health Savings Accounts make it easier to pay for medical expenses when they arise. Coupled with a high-deductible health insurance policy, a Health Savings Account allows you to save pre-tax money and earn interest tax-free. This allows you to have money set aside to cover a whole host of medical bills, including items that aren't necessarily covered by traditional insurance plans, such as dental expenses or alternative treatments. Individuals and employers can deposit up to $2700 per person and up to $5450 for a family, and any time you need to withdraw any amount to pay for qualified healthcare costs, you can do so tax-free. In addition, premiums for high-deductible insurance policies can be as little as half the amount of traditional PPO policies.

And because a Health Savings Account is tied to an HSA insurance policy, more expensive treatments are covered, usually 100%, after you've met your deductible. When you turn 65, any savings remaining in the account can be withdrawn tax-free to be used for medical expenses you incur in your senior years. In addition, the savings you accumulate in a Health Savings Account work like a retirement fund. The money grows tax-deferred like an IRA, and you can withdraw the money after age 65 to pay for non-medical expenses without penalty, although you will be required to pay taxes. It is important to note, however, that amounts withdrawn prior to age 65 are subject to penalties and taxes.

Giving the individual more consumer power when making healthcare decisions not only helps you and your family save money, but also creates an environment in which healthcare costs in general become more reasonably priced. Essentially, the price of healthcare is so high because free market forces have little sway in the realm of healthcare products and services. Insurance coverage causes a disconnection between the consumer and the item purchased. When you visit the doctor or purchase a prescription from the pharmacist, you don't know the real price tag. All you see is your insurance payment and the price you pay at the cash register, after your insurance company pays the balance.

This lack of price transparency has led to less competition within the marketplace. People have traditionally chosen their doctors, health products, and other medical items based on location, convenience, or other factors not related to price. When people have the choice to compare different health care providers based on quality of service and price, soon overpriced healthcare will become a thing of the past. People will shop around and force providers to price healthcare more competitively.

As more and more people turn to Health Savings Accounts, medical providers will feel the pressure to post their prices and compete for the consumer's business. Armed with the knowledge of what healthcare actually costs, individuals and families will be less willing to overuse the system, which also drives up prices. (When healthcare appears to cost little or nothing, most people are prone to make use of services even though it may be unnecessary).

At the same time, Health Savings Accounts naturally promote the use of preventive care. When people understand the true costs associated with healthcare, they will be willing to pay a little more up front to keep their engine running smoothly rather than pay a lot more at a later date to fix a problem they could have avoided.

Health Savings Accounts have also put affordable healthcare within reach for more people, who were previously paying medical expenses out-of-pocket due to inadequate or non-existent insurance coverage. The low premiums of a high-deductible HSA plan together with the option of putting your money in a savings account that earns interest has already encouraged large numbers of people who previously went without coverage to purchase a health insurance plan.

Only time will tell whether or not Health Savings Accounts can drive down skyrocketing healthcare costs, but the system created by such accounts, which affords the individual more freedom to control his or her own financial and medical destiny, bodes well for the future of healthcare in America.

Posted by Wiley Long at 02:11 PM | Comments (0)

November 25, 2009

Health Savings Account High Deductible Options

If you are looking for an affordable health insurance plan, then you should look for plans which have a high deductible with a Health Savings Account option. The deductible is the amount which you have to pay out of pocket for healthcare before the insurance company starts to pay for your coverage.

The major costs of a health insurance plan come from the monthly or annual premium and the amount of deductible. Higher the premium, lower the deductible.

But a monthly or annual obligation of high annual premium is a heavy toll on your income and it is regular in nature, so the feel and zeal at having gotten yourself an affordable health insurance gets lost somewhere.

The health insurance providers realized it early on and agreed that the basic key to providing a health insurance plan is high deductible at the time of treatment and claim settlement and low periodic premium. This is based on the simple logic that one never knows when one may fall ill, when that catastrophic ailment or event may strike.

Also, the amount of premium collected in a year is not carried forward for the coverage stock of next year…and it may be ages before you even fall sick if you are a healthy being.

So the best approach to getting an affordable health insurance plan is to check for health insurance quotes that charge low premium and high deductible. Then you can get a Health Savings Account to help cover your deductible.

This saving of yours forms the part of non-taxable income and can be used any time towards the payment of deductible amount as and when the need arises. But this amount cannot be redeemed or utilized towards any other purpose. Otherwise you will have to pay tax on it.

So the best approach to getting an affordable health insurance plan is to check for health insurance quotes that charge low premium and high deductible health plans with a Health Savings Account.

Posted by Wiley Long at 11:15 AM | Comments (0)

November 20, 2009

Health Savings Account Things To Consider

A Health Savings Account is becoming a popular tool to save money for medical expenses. Many employers are providing them in conjunction with a high-deductible health insurance plan so that their employees can afford their deductibles. While Health Savings Accounts are becoming more popular, many people still do not know much about them. Here are six things to consider if you are thinking about getting a Health Savings Account.

1. Pre-Tax Contributions to your Health Savings Account

A Health Savings Account is kind of like a 401k for your health. Just like a 401k, you can deduct a portion of your paycheck tax-free and put it into a Health Savings Account. Deducting a small percentage of your paycheck without taking taxes out will not result in much difference in your take-home pay. Therefore, you can accumulate a pretty nice savings for health expenses this way.

2. Health Savings Accounts Allow You To Budget

When it comes to health care, most people do not budget anything for it. Since health care is such a hard thing to budget for, most people do not account for it until it happens. With a health savings account, you can put away enough money to provide the medical expenses you need. Budgeting a small portion of your income to this makes sense and it will help you avoid large medical bills that you cannot pay.

3. Employer Match to you Health Savings Account

Depending on your employer, they might make a contribution to your Health Savings Account for you. This works much the same way as an employer-match program on your 401k. You contribute so much and your employer will match up to a certain percentage to put in your Health Savings Account. This is a great way to build up funds without investing that much of your own money.

4. Early Health Savings Account Distribution Penalties

A Health Savings Account is designed to save for health expenses only. If you take any of the money out for other reasons before you are 65, you will be penalized for it. In fact, you will have to pay taxes on the money and get hit with a 10% early distribution fee. This means you should stay away from this as a form of saving money for anything except medical fees.

5. Health Savings Accounts Give You More Control

When you have money set aside for your health care expenses, you are automatically given more control over the situation. Many people just go wherever they can go that is the cheapest because they have no money reserved for health care. When you put back enough money in your Health Savings Account, you can choose where you want to go based on treatment and service instead of money only. Getting the treatment you deserve should never be about money and a Health Savings Account can make that possible.

6. Anyone Can Get a Health Savings Account

Contrary to what many people might think, you don't have to be at an employer that offers Health Savings Accounts to get one. You can get one from a bank or any other financial institution. You can still contribute tax free and get all the benefits of a Health Savings Account regardless.

Posted by Wiley Long at 11:14 AM | Comments (0)

November 17, 2009

High Deductible Health Plans and Health Savings Accounts

As the cost of health insurance and healthcare continues to grow, individuals and families are actively looking for ways to lower their healthcare costs. This increased cost, as well as the current health care reform efforts, have been beneficial for a couple of reasons. First of all, it has caused people to creatively look at ways to reduce premium cost. Secondly, it has caused us to consider what real purpose health insurance serves and evaluate our past coverage choices. Let's take a look at the components of using a Health Savings Account plan:

High-Deductible Health Plan (HDHP)

The Health Savings Account (HSA) coverage option has two components. The first component is a high-deductible health plan (HDHP). This is a major medical health insurance policy that has deductible options that meet guidelines established by law. Plans that meet the deductible criteria are considered to be "qualified" high-deductible health plans. There is an inflation factor whereby the deductible guidelines adjust on a yearly basis. These (HDHP) plans are considered comprehensive in the sense that all medical expenses large or small, even doctor visits and prescription drugs, are considered covered expenses and count towards the deductible.

It is important to note that there can be no benefits paid until the deductible is met on a qualified HDHP. For example, there cn be no doctor office co-pay or prescription drug co-pay. Having an up-front benefit of this type would violate the guidelines and disqualify the HDHP. It is important to note that preventative care or wellness benefits are allowed to be covered before the deductible on a qualified HDHP. For plans that use Preferred Provider Organizations (PPO), you also get the benefit of discounted pricing for all medical visits and procedures by a participating provider.

One unique and well accepted feature of the HDHP is that there is only one deductible for a family. This means that the deductible can be met by a single family member having a large medical expense or by all family members combining medical expenses. Once the deductible has been met, the entire family begins to have expenses covered. The expenses after the deductible can be covered at 100% or by a coinsurance percentage until a family maximum out-of-pocket limit is met.

Health Savings Account

The other component is a Health Savings Account (HSA). This is simply a qualified account for making deposits that can later be used for medical care. These accounts may be established with a bank, insurance company, credit union or investment company. The accounts must be "qualified" savings accounts and meet certain criteria established by law, therefore, it is important to verify that the account you are considering meets the qualifications. These accounts are interest bearing accounts and the funds can be accessed by debit card, writing checks or requesting a reimbursement of medical expenses paid. There are limits on the amount that can be contributed to an HSA each year:

2009 contribution limits
-single $3000
-family $5950
*$1,000 catch-up for 55 or older

2010 contribution limits
-single $3050
-family $6150
*1,000 catch-up for 55 or older

Here is the best part. Contributions to the HSA are deductible for tax purposes. This means that routine medical expenses, even things that are not covered under the medial plan such as dental, vision and over-the-counter medicines can be paid for with pre-tax dollars rather than after tax dollars.

Posted by Wiley Long at 12:43 PM | Comments (0)

October 28, 2009

Health Savings Accounts Are Benefiting Employees and Employers

Multiple surveys conducted by ACS Solutions have shown that employees and employers who are using a Health Savings Account and a HSA-qualified health insurance plan are saying they are satisfied with their coverage, spend less on healthcare and are more engaged in managing health benefits.

Tax-favored Health Savings Accounts are designed to help individuals pay for current qualified health care expenses and save for future medical and retiree health care expenses.

“With the vigorous debate over health care reform, and more specifically health insurance reform, the survey results indicate that employers and account holders more effectively control costs and are satisfied with their coverage by utilizing Health Savings Accounts,” said Tom Hricik, national director for Dallas, Texas-based ACS Solution, an administrator of HSA plans. “The survey results also indicate that Health Savings Accounts are being used by account holders as an important vehicle to save for future medical expenses.”

Employers found benefits to Health Savings Accounts, as well. Exactly 86% of those offering the option for more than three years indicated that plan costs were the same or less than the previous year. Almost all employers surveyed (96%) said Health Savings Accounts allow the company to continue offering group-sponsored health insurance.

The surveys were completed in the spring by Buck Consultants, an independent arm of ACS.

The surveys found that 84% of account holders said their HSA-qualified health insurance plans are affordable, and 72% said they pay the same or less than with a traditional type of health plan.

After moving to a Health Savings Account, more than half of account holders said they more closely monitor their health care costs, a finding that supports one of the key claims for how Health Savings Accounts ultimately save money.

Exactly 48% said they read their medical bills more closely, 46% have a better understanding of where their money goes, and about 40% more closely evaluate costs before electing medical services, according to the surveys.

A majority of HSA holders (81%) said the ability to personally control health care costs is an important factor that caused them to select an HSA.

Posted by Wiley Long at 10:28 AM | Comments (0)

October 22, 2009

Health Savings Accounts Are Better Than Flexible Spending Accounts

Not long ago, Flexible Spending Account were all the rage. They allowed you to set aside pre-tax dollars from your payroll check and place it into an account which you could use to pay for medical expenses. Unfortunately, these accounts have many drawbacks and they are no longer as appealing as they once were.

Today, Health Savings Accounts have replaced Flexible Spending Accounts as the preferred pre-tax dollar savings vehicle for healthcare spending. There are many more advantages to Health Savings Accounts which are more appealing to individuals and families.

The main benefit of the flexible spending account is that you can put up to $4,000 dollars per year into the account. That’s un-taxable money which lowers your tax liability come April 15. Technically, there is no federal limit on the amount you can place into the account, but it is usually capped at $4,000.

Lawmakers in Washington are fighting over what to do with these accounts. The ability to be able to place pre-tax money into them makes them one of the most popular depositories for money that is used for medical expenses. Any ‘messing’ with this benefit will smell of a tax increase on the middle class.

On the other hand, there is one reason that you should get out of your flexible spending account if you have one: you use your money by the end of the calendar year or lose it.

Enter the Health Savings Account. This account is also pre-tax contributable and you can also contribute to it on a post-tax basis too. You do not give up your money in a calendar year, either. You keep it and it keeps accumulating in your Health Savings Account with interest until you use it.

Under the flexible spending accounts rules and guidelines, you are asked to provide receipts and proof of purchase for every little charge made on the account. It is watched like a hawk. Health Savings Accounts still have the restriction of only being used for medical expenses, but there are no hawks looking over your shoulder. Should you become the target of an IRS audit, however, you will need to provide receipts for all of your purchases for the year in question.

It is time for the flexible spending account to die slowly. And it would on its own as long as those who are still using them can get a better deal elsewhere – which is possible with a Health Savings Account.

The advent of Health Savings Accounts has been a bright spot in the health care arena for several years now, even in spite of the annual limits that one must adhere to when placing money into the account. Those who do have a better chance of being able to pay for unexpected medical events that occur in their lives. And that is peace of mind that is hard to come by right now.

Posted by Wiley Long at 09:13 AM | Comments (0)

October 19, 2009

Health Savings Accounts Continue to Grow in 2009

According to a Canopy Financial's Health Savings Account Market Report for the first quarter of 2009, the average Health Savings Account balance continues to grow from quarter to quarter.

Canopy found that the average individual Health Savings Account holder for the first quarter of 2009 was 42 years old and contributed $116 monthly, up slightly from an average monthly contribution of $111 for the fourth quarter of 2008. The average family Health Savings Account holder for the first quarter of this year was 45 years old and contributed an average of $239 monthly, up from an average monthly contribution of $206 for the previous quarter.

For the same time period, the average monthly employer contribution increased from $69 to $113 for individual Health Savings Account holders. The average monthly employer contribution rose more significantly, to $266 for first-quarter 2009 from $133 in the previous quarter. The average ages remained the same for the groups from quarter to quarter.

“Consumers enrolled in HSA plans demographically are very similar to consumers of traditional health care,” notes Canopy CEO Vik Kashyap. He also points out “the fact that consumers are clearly using these accounts for saving towards long-term care needs and even retirement.”

First-quarter 2009 average individual HSA balances totaled $960, up from $928 in the fourth quarter of 2008 and from $697 for first-quarter 2008, according to Canopy. Average HSA balances for families also rose, increasing to $1,720 in the first quarter of 2009 from $1,600 in the last quarter of 2008 and from $1,419 in first-quarter 2008.

This trend of increasing contributions, says Kashyap, is noteworthy. “The most significant thing we have noticed is that even in a recession economy, both employers and consumers continue to make contributions to and invest in Health Savings Accounts, which supports the contention that HSA products have become a key/integral component of employer-sponsored health care, and that contributions in many ways mimic those made to 401(k)s in which people invest a little bit each month into these accounts in an effort to accumulate long-term wealth/funds for long-term medical needs,” he tells ICDC.

According to Canopy, the average monthly HSA spend for individuals in first-quarter 2009 was $81, down slightly from $83.54 in the previous quarter. Likewise, the average monthly HSA spend for families was $103 most recently, down from $108.19. Spending on hospital services continued to make up a large amount of the spend for both individual and family Health Savings Accounts over both quarters. Other categories of reported spend include dental services, vision and lab/diagnostic tests.

“The most important take-away for employers is the dollar values held in Health Savings Accounts, and the fact that their employees are using these accounts not only as savings vehicles for long-term medical expenses, but ultimately towards retirement,” maintains Kashyap. “Additionally, as their employees increasingly use a Health Savings Account to manage their health care expenditures, they are becoming much more informed/empowered consumers of health care services, which will play a key role long term in reducing overall health care costs of an organization and the costs associated with managing employer-sponsored health care.”

The report is available at: www.canopyfi.com/hsametrics.htm

Posted by Wiley Long at 09:06 AM | Comments (0)

October 07, 2009

Health Savings Account Balances Increasing

According to data collected by Canopy Financial Inc, a provider of health care banking technology solutions, balances in Health Savings Accounts increased slightly in the first quarter compared to fourth quarter levels in 2008.

The average balance in a family Health Savings Account grew by 7% to $1,720 during the first quarter, while the average balance in an individual Health Savings Account rose 3% to $960.

And compared to the year earlier period, Health Savings Account balances also grew. The average family Health Savings Account balance was $1,419, and the average individual Health Savings Account balance was $697 during first quarter of 2008.

Contributions to Health Savings Accounts have also climbed for both employers and employees.

During the fourth quarter, the average monthly employer contribution was $69 and $133, respectively, for individuals and families. In the first quarter, that increased to $113 for individual Health Savings Accounts and $266 for family Health Savings Accounts.

Similarly, employees are also placing more money into their Health Savings Accounts.

Average contributions for an individual HSA were $111 for individuals and $206 for families in the fourth quarter of 2008. That rose slightly to $116 for individuals and $239 for families during the first quarter.

Steady contributions from employers and employees kept Health Savings Account balances growing amid the recession in the first quarter, noted Vik Kashyap, chief executive of Canopy Financial. “A high percentage of the employers that offer these accounts are contributing into the HSA,” he noted. “They fix the contribution on a monthly basis, so that it’s made irrespective of how the economy is doing.” Interestingly, while employees likely felt the squeeze on their dollars during the first quarter, they were fine with chipping into their Health Savings Accounts, he added.

“You’d expect people to not be contributing, but there’s a tax advantage here,” Mr. Kashyap noted

Health Savings Account holders also increased the amount of money that they transferred to investments.

In the first quarter, Health Savings Account holders transferred an average of $1,372 to investments from individual Health Savings Accounts and $2,633 from family accounts, compared with $1,167 for individual accounts and $1,978 from family Health Savings Accounts in the fourth quarter.

Amounts of money transferred into Health Savings Accounts from investments also rose, with an average of $722 transferred in from investments for individual accounts, up from $540 in the fourth quarter.

Meanwhile, on the family side, the amount transferred from investments dropped, falling to $1,157, from $1,556 in the fourth quarter.

Posted by Wiley Long at 09:17 AM | Comments (0)

October 05, 2009

Can a Health Savings Account Help Your Business?

One option that can help small businesses struggling with healthcare is a Health Savings Account. Small businesses are constantly looking for ways maintain overhead while still providing quality employee benefits. Money placed in Health Savings Accounts are not subject to federal income tax when deposited. Health Savings Accounts are designed to allow taxpayers to set aside funds to cover the costs associated with medical care. Individuals can benefit from using a Health Savings Accounts as a way to cover their out-of-pocket medical expenses.

Benefits of Health Savings Accounts

Here are some of the ways that Health Savings Accounts save money for individuals and small business owners who participate:

* The tax break that covers the funds deposited in Health Savings Accounts is passed on to the individual account holder. The more money deposited in the account, the less federal income taxes the account holder will have to pay.

* Health Savings Accounts are coupled with an HSA insurance (also known as high-deductible health insurance) plan that is the responsibility of the individual. This means employers do not have to assume the costs associated with group health insurance plans.

* Health Savings Account funds can be rolled over into the next year. There are no restrictions or penalties for not using all of the funds in a calendar year.

* Health Savings Accounts accrue interest over time and roll over from year to year.

Health Savings Accounts are excellent alternatives for small business owners wishing to help employees stay healthy and manage the costs of healthcare. They feature less risk for the employee and more benefits for the individual. Implementing Health Savings Accounts in a small business is evidence of the employers concern for the welfare of employees, yet it is an affordable and manageable option at the same time.

Health Savings Accounts for Companies Large and Small

While Health Savings Accounts are great for individuals and small businesses, larger businesses are also turning to them as a means of covering employees that are not benefited by health insurance plans. Industry leaders like Walmart and UPS have developed Health Savings Account programs to extend a helping hand to some of their employees.

Overall, Health Savings Accounts are a unique alternative to expensive health insurance programs. They provide small businesses with the level of affordability and flexibility that is desperately needed in these tough economic times.

Posted by Wiley Long at 03:58 PM | Comments (0)

September 21, 2009

Health Savings Accounts - You Can Benefit By Owning One

In today's economy, everyone can use a financial advantage. One way to get a financial advantage for your health insurance is to raise your deductible so you can lower your monthly health insurance premiums. If you raise your deductible to at least $1,150 for single coverage or $2,300 for family coverage, you can take advantage of a Health Savings Account. With a Health Savings Account, you can make a tax-deductible contribution of up to $3,000 (or $5,950 for family coverage) in 2009, which you can use tax-free for medical expenses in any year.

A Health Savings Account (HSA) can be particularly beneficial for early retirees, who can cut their premiums substantially by raising the deductible (you can also contribute an extra $1,000 if you're 55 or older). For instance, a healthy 55-year-old man in Illinois can get a Humana HSA eligible policy with a $5,200 deductible for $207 per month, or $179 with no drug benefit.

You can't contribute to an HSA after you sign up for Medicare, but you can use the money tax-free for medical expenses at any time, and you can use it penalty-free for anything after age 65. You can even use HSA money to cover premiums for Medicare parts A, B and D, and for Medicare Advantage plans (but not to pay medigap premiums). An HSA can also help pay qualified long-term-care premiums.

Learn more about Health Savings Accounts and how they can benefit you at HSA for America.

Posted by Wiley Long at 10:47 AM | Comments (0)

September 18, 2009

Health Savings Accounts Growing Survey Shows

Health Savings Accounts continue to be adopted widely, with an ever-growing number of accounts and assets, according to a recent survey by Celent.

Participants in the latest Health Savings Account benchmarking survey from Celent, conducted between January 2008 and January 2009, reported a 46.1 percent increase in the number of Health Savings Accounts. During the same period, survey participants saw their asset base grow by 62.6 percent.

According to Celent executives, Health Savings Accounts should survive current efforts by Congress and the Obama administration to reform healthcare because they repesent one of the fastest-growing retail banking products.

Between January 2008 and January 2009, the survey reported, average account balances grew by only 13 percent, to $1,561. Officials attributed the low growth rate to a high number of unfunded accounts (accounts with no contributions during the preceding 12 months), which stood at 18 percent. This is due to a relatively high number of accounts coming online in January 2009, as well as a failure by some banks to purge inactive accounts.

Other key findings include:

* Investments fell of 5 percent of total assets, mostly likely due to the recessionary environment, unemployment and falling investment values. For larger Health Savings Account players, the number of accounts with investment balances barely registers; such accounts made up only 1 percent to 2 percent of all accounts.

* Specialist segment players are enjoying increased revenue per account, up to $84. This growth can be largely traced to improved management of DDA margins/spreads.

* In terms of distribution, the top 25 and specialist segments are moving to resemble each other. Top 25 players are gaining more sales through health plan channels, and specialists are building more business in the direct-to-employer channel.

* Debit cards are attached to almost all Health Savings Accounts, but are only used for 66 percent of the funds disbursed. Checks continue to hold a good share (20 percent) of disbursements, while a new disbursement method, integrated payments, accounts for 1 percent of dollar volumes.

"Health Savings Account pricing continues to decline, with average collected monthly fees now hovering just above the $2 mark," said Red Gillen, a senior analyst with Celent's banking group and author of the report. "In fact, some Health Savings Account players are even preparing for the eventuality when Health Savings Accounts go the way of checking accounts – in other words, free."

Learn more about Health Savings Accounts and how to find the best HSA Insurance for your needs at HSA for America.

Posted by Wiley Long at 11:31 AM | Comments (0)

September 13, 2009

Health Savings Account Are A Great Investment

Investing for the future is something the majority of us are taking into consideration, especially with the current financial crisis. We want to save and invest for our future. Perhaps one of the best investments today is a Health Savings Account.

One of the main reasons Health Savings Accounts are considered to be a good investment is that you will have full control of where to invest your money. You can decide to invest your money in stocks, mutual funds, bonds, or any investment channel, with the bank of your choice acting as your Health Savings Account administrator.

Health Savings Accounts are often regarded as a second retirement investment. One of the attractions about this type of account, as an investment, is that the funds that you put into it are permitted to grow minus the taxes that are often associated with other investment schemes. This little trick will help you to earn a better return with on your money.

Another benefit that you can get from investing in your Health Savings Account, is that you can use the funds to pay for your medical expenses. There are health expenses that your health care insurance, like Medicare, will not be able to cover for you, but your Health Savings Account will assume.

This an important facet of Health Savings Accounts, now that the cost for health care is soaring rapidly. This account is your best tool to build up your funds necessary to shoulder the rising cost of health care; once you retire from your full time employment. This is the only account where you can withdraw money practically tax-free to shell out for your medical costs.

The amount that you can earn from your Health Savings Account is dependent on the following factors:

1. Amount of your annual contributions.
2. Length of time that you have contributed.
3. Your investment return.
4. Length of time before you withdraw funds from your account.

You can always get the most out of your Health Savings Account as follows: (1) you can take the risk and invest the funds into high yielding investment vehicles such as the stock market, and the likes; (2) do not make any withdrawals from your Health Savings Account for as long as possible; (3) deposit the maximum amount of money you can make at the start of each year.

In a capsule, to increase your ROI on your Health Savings Account is to fund it annually, preferably at the start of the year, put the money to work wisely and delay any withdrawals.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 10:44 AM | Comments (0)

September 07, 2009

Health Savings Account Benefits

"Health is Wealth" is not a very common phrase. But the unpredictability in our lives has made it imperative to have a Health Savings Account. A Health Savings Account will help ease the financial pressure in our later years in life and in an emergency situation.

Below are benefits of a Health Savings Account and how they can help you now and in the future:

* The usage of money in a Health Savings Account is totally dependent on the person who opens the account. However, in case of the money being used on non-qualified medical expenses, the benefits are lost.

* In case of company sponsored health insurance, there is no facility for a rollover from year to year. If you open a Health Savings Account yourself, you get the benefit of a rollover.

* A Health Savings Account is immune to income tax liabilities. So the amount of money saved will be more and fast.

* Health Savings Accounts are quite easy to open. All you need is a high deductible health insurance plan to open a Health Savings Account with a bank.

* In most instances, the account holder also gets a debit-type card, which can be used for the qualified medical expenses.

* The contribution to your Health Savings Account by your employer are excluded from your taxable income.

Those who support Health Savings Accounts propose that these accounts will bring down health care costs, as well as, enhance the efficiency of the health care system. However, the usage of the amount in a Health Savings Account for non-qualified medical expenses can result into lapse of the benefits. So it is advisable that it is used only for qualified medical expenses.

Some of the expenses which come under HSA qualified medical expenses for Health Savings Account are for the treatment of acupuncture, alcoholism, birth control pills, blind services, crutches, hearing aid and batteries, Domestic Aid (rendered by nurse), drug addiction Recovery, drugs - prescription or over-the-counter, Dyslexia Language Training and Hearing Aids. It is also applicable for hospital care, insulin, laboratory fees, Lifetime Medical Care prepaid; retirement home, artificial limbs, nursing Services and obstetrical expenses.

Similarly, some of the non-qualified HSA medical expenses (these don't qualify for the usage of money from a Health Savings Account) are babysitting, childcare, cosmetic surgery, dancing lessons, funeral expenses, future medical care, hair transplant, liposuction, medicines imported from another country, swimming lessons, teeth whitening and weight-loss program.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 10:54 PM | Comments (0)

September 01, 2009

How a Health Savings Account Will Save You Money

Healthcare costs rise every year for all Americans - employer, employee, self-employed, and their families. The US government is working on this, but their track record on reform is not so good (or fast). Meanwhile, Americans pay more and more for basic health care, at a time when many mortgages are going up and many people are unemployed or underemployed.

One solution that has worked for more and more families each year is the Health Savings Account. 10 reasons to consider a Health Savings Account:

1) Health Savings Account premiums are vastly cheaper than other healthcare plans.

You are immediately saving money. The renewal costs are also much cheaper than an HMO, PPO or other plans.

2) Health Savings Accounts will cover peripheral medical costs.

With many HMOs or PPOs, dental care, eye glasses, and eye surgery are not covered. Health Savings Accounts can be used for this, and also acupuncture, psychiatric treatment,fertility treatment and more. See IRS Publication 502.

3) You control your medical care with a Health Savings Account.

There is no network. No one will force you to choose from a list of doctors or hospitals. With a Health Savings Account, you play an active role in every healthcare decision. Even the best doctor may benefit from having to explain his or her recommendations when you ask the right questions about your healthcare.

4) Health Savings Accounts are tax-deductible.

All the money you deposit into your Health Savings Account is tax-deferred. Even if you spend it all on approved medical expenses, the money is still deductible.

5) Money saved in a Health Savings Account never expires.

Unlike a flexible spending account, the money in your Health Savings Account can grow for years until you need it.

6) Health Savings Accounts can be filled from an IRA.

You can pay for your health care from your retirement account - one time. If you're short on cash, you can take a bit from your retirement and transfer to your Health Savings Account without a penalty.

7) With a self-directed Health Savings Account, your health care dollars can be an investment.

Your Health Savings Account money can join with your self-directed retirement funds and invest in real estate, gold, stock, or a loan.

8) Health Savings Account investment earnings are tax-deferred.

If you make a good investment and earn thousands, that money will stay in your Health Savings Account until you need it, tax-deferred.

9) Health Savings Account money earns interest when you're not using it.

If you can't find a good investment, or between investments, the money in your Health Savings Account earns tax-deferred interest.

10) Contrary to common sense and popular belief, health care costs are not tax deductible for most Americans.

Healthcare costs must be 7.5% of your income to be tax deductible. Most Americans do not qualify for this, even in a bad health year.

Learn more about Health Savings Accounts and how to get the best HSA Plan for your needs at HSA for America.

Posted by Wiley Long at 05:23 PM | Comments (0)

August 27, 2009

Study Shows Health Savings Accounts Growing at Rapid Pace

A new report entitled "HSA Benchmarking Analysis: Market Trends and Economics 2009" which was released by Celent, a Boston-based financial research and consulting firm, shows the number of Health Savings Accounts and assets held in HSA plans continues to grow despite the downturn in the economy.

From January 2008 to January 2009, there was an increase of 46.1% in the number of Health Savings Accounts. During that same period, HSA administrators reported that assets grew by 62.6%. The report also shows during that same time period not a single HSA administrator experienced a decrease in balances.

That phenomenon reflected a shift in the health care marketplace. As the economy deteriorated and employers looked to cut costs, these high-deductible health plans became more attractive to employers and employees. These HSA health plans are cheaper for employers to offer and less costly for employees to purchase.

The study is based on data released to Celent by 14 HSA administrators. The report referred to Health Savings Accounts as the “darling of retail banking” because of their growth rates, which are unmatched by any other retail banking product.

Health Savings Accounts are expected to continue to grow in 2010. You can learn more about Health Savings Accounts and find an HSA Plan that is right for you at HSA for America.

Posted by Wiley Long at 12:53 PM | Comments (0)

August 24, 2009

Using a Health Savings Account While on Medicare

I received this question recently: My wife and I turn 65 this year and will sign up for Medicare. Will we still be able to use the money in our Health Savings Account?

The Answer: You sure can!

Even though you can't contribute to a Health Savings Account after you sign up for Medicare, you can keep the Health Savings Account and use the money tax-free for medical expenses. In fact, you can use the money in your Health Savings Account for anything after age 65, although you will owe taxes on withdrawals for non-medical expenses.

There are plenty of medical fees to which you can apply the money. For example, you can tap the account for Medicare deductibles and co-payments. You could also use Health Savings Account money to cover premiums for Medicare parts A, B and D (prescription-drug coverage), and to pay Medicare Advantage premiums. And you can use Health Savings Account money to help pay qualified long-term-care premiums. However, you can't use Health Savings Account money tax-free to pay Medigap premiums.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 09:15 PM | Comments (0)

August 21, 2009

Health Savings Accounts Provide Tax-Free Health Care Savings Now

Many Americans are feeling the pinch these days from ever-increasing health care costs, and a comprehensive solution to this problem still needs to be found. That being said, a Health Savings Account can ease the burden of high deductibles in the here-and-now. Anyone under the age of 65 who purchases an eligible high-deductible health insurance plan - either through an employer or on their own - can set up a Health Savings Account, which supplements high-deductible health insurance policy coverage through the use of tax-free, user-contributed savings.

For the 2009 tax year, a policy qualifies as high deductible health insurance plan if it meets both of the following conditions:

* The policy’s annual deductible is at least $1,150 for an individual or $2,300 for a family.

* Yearly out-of-pocket health care expenses do not exceed $5,800 (individual) or $11,600 (family).

Eligible policyholders can add funds to their Health Savings Account by contributing up to $3,000 per year in pre-tax income (up to $4,000 per year if you’re 55 or older). Health Savings Account users also earn tax-free interest on their contributions, and fee-free withdrawals can be made at any time for health care expenses. Employers can contribute funds to Health Savings Accounts as well, and unlike a flexible spending account there is no “use by” deadline tied to a Health Savings Account.

Even though there are substantial tax and savings benefits to a Health Savings Account, it also contains drawbacks in the form of limited usage and contribution amounts. Users who withdraw Health Savings Account funds for any purpose other than health care are hit with heavy penalty fees, and the yearly maximum for contribution amounts is relatively small compared to the astronomical cost of a major medical procedure not covered by insurance. Despite these limitations, however, Health Savings Accounts provide eligible policyholders with a long-term, cost-effective way to offset out-of-pocket health care costs.

Get more Health Savings Account information at HSA for America.

Posted by Wiley Long at 01:20 AM | Comments (0)

August 15, 2009

Health Savings Accounts Are A Great Option For The Uninsured

Consumers have begun a quiet revolution, as Congress continues to propose and debate trillion dollar options for health insurance. Data being reported from several sources shows Health Savings Accounts are beginning to make a dent in the uninsured market.

The increase in Health Savings Accounts is growing in both the individual market as well as the group market. The option is especially appealing to small business owners who can contribute something to their employee's Health Savings Accounts, save on premium, and still be paying less than they paid for their traditional PPO group coverage.

Even more surprising is the demographic that is buying Health Savings Accounts. Once thought to be appealing only to the rich, the young and the healthy, several majors insurers have reported an unexpected trend.

40% of those buying HSA-qualified health inusrnace plans and investing in Health Savings Accounts are reporting average income of under $50,000. One company, Assurant Health, reports that 27% of those purchasing HSA insurance plans and opening Health Savings Accounts have a net worth of less than $25,000.

The most encouraging news which is being reported by three different insurance sources is that 33 – 40% of those buying HSA plans with Health Savings Accounts were formerly uninsured.

American Health Insurance Plan (AHIP), a national association which represents 1,300 member companies who provide health insurance to more than 200 million Americans, reported that over 8 million Americans now have Health Savings Accounts, an increase of more than 31% since January 2008.

Posted by Wiley Long at 11:05 AM | Comments (0)

August 12, 2009

Health Savings Accounts at Work

Below is a personal story of Health Savings Accounts at work. It illustrates the tax benefits, choice benefits, and a cost benefits associated with Health Savings Accounts. With healthcare reform taking center stage these days, I wanted to share with you another option that should be consider in the healthcare debate: Health Savings Accounts.

Sound Mind Investing went to Health Savings Accounts for our employees in 2006. So with three years under our belts, we can vouch for how they affect spending decisions. Here's how they recently affected mine.

Let me first say that my wife Kim and I have been trying to pay our health care expenses out-of-pocket so that we can use our HSA as another type of retirement vehicle. And since we're more or less keeping our hands off of it, we might as well invest it, right? So every month, the company makes a deposit into our HSA which is held by The Sound Mind Investing Funds and used to purchase shares of SMIFX.

Now this is a great way to plan for retirement, but it's not cheap because remember, we're paying our health care costs out-of-pocket, NOT out of our HSA. So last year, when we had another baby, we had to have the cash to pay for the doctors and hospital visits if we didn't want to use some of our HSA investments in SMIFX.

But there's some good news. Once we meet our deductible, everything over that deductible is paid for by our insurer. So when December rolled around and we had finally met our deductible, I promptly scheduled visits to a chiropractor. I also scheduled a visit to a new allergist as it had been a while since I had been tested for allergies. It's a painful enough procedure without the cost. So at least getting it done for "free" helped soothe the burn a little.

Furthermore, our health plan covers prescriptions after the deductible is met. And wouldn't you know, the allergist prescribed three new medicines. We're on mail-order prescriptions where they send three month's worth at a time. This amounted to $600 worth of medicine that I didn't have to pay for. But I needed to get these prescriptions in before the end of 2008 because come 2009, we're back to paying everything ourselves. This is an HSA at work.

Fast forward to about four weeks ago, I started having heart palpitations. I'm a reasonably healthy guy and was a little concerned. I seem to read a story every year about some super fit athlete who dies unexpectedly from an undiagnosed heart ailment. But here's the thing - if I were going to be tested, it was going to cost me. It came down to peace of mind vs. what will likely be $1,000 worth of EKG's, stress tests, and Holter monitors. I decided it would be prudent to have the testing done regardless. As it turned out, my tests came back with good results. So yes, I'm paying a lot of money for what amounted to assurance. But that's okay. It was my decision. This is an HSA at work.

Fast forward to this morning. I've been battling a cold for a while, so when I was getting my allergy shots yesterday, I made an appointment for this afternoon with my allergist. But when I woke up, I felt a lot better. Cough was more or less gone and my voice was no longer hoarse. So I had a decision: Pay for a doctor visit when I'm potentially on the mends or forgo it and hope for the best? I canceled it first thing. This is an HSA at work.

Health Savings Accounts are the real deal. There's a tax benefit, a choice benefit, and a cost benefit. They give the consumers the freedom to spend or save or invest based on what's best for his or her life situation. Giving the consumer the ability to decide for themselves how best to manage their health care costs - and pocket the savings - is an HSA at work.

This story was originally posted by Matthew Pryor on the Sound Mind Investing Healthcare Blog at http://www.soundmindinvesting.com/weblog/health-care/

Learn more about what a Health Savings Account can do for you at HSA for America.

Posted by Wiley Long at 09:53 AM | Comments (0)

July 07, 2009

Health Savings Account Contribution Limits Set to Rise

The Internal Revenue Service has said the maximum Health Savings Account contribution is set to set to increase in 2010. Also set to increase is the minimum deductible imposed by health insurance plans linked to Health Savings Accounts and the maximum out-of-pocket expenses that employees can be required to pay.

The maximum contribution that can be made to an HSA in 2010 for employees with single coverage will be $3,050, up from $3,000 in 2009. The maximum HSA contribution for those with family coverage will rise to $6,150, up from $5,950.

Additionally, the maximum out-of-pocket expense, including deductibles, that employees can be required to pay next year will rise to $5,950 for single coverage, up from $5,800 this year, and $11,900 for family coverage, up from $11,600.

The minimum deductible of the high-deductible health insurance plan to which Health Savings Accounts must be linked will increase next year to $1,200 for single coverage and $2,400 for family coverage. The current minimum deductibles are $1,150 for single coverage and $2,300 for family coverage.

Learn more about what a Health Savings Account can do for you at HSA for America.

Posted by Wiley Long at 08:58 AM | Comments (0)

June 19, 2009

Over 8 Million Now Enrolled In Health Savings Accounts

A new census release by America's Health Insurance Plans (AHIP) has found that over 8 million Americans are covered by Health Savings Account eligible insurance plans which is 31 percent increase since last year. Since 2004, when Health Savings Accounts were created, AHIP has conducted a periodic census of its members participating in the Health Savings Account market.

Another report by AHIP found HSA account holders have a broad range of incomes across the country. The report, Estimated Income Characteristics of HSA Account holders in 2008, used a geo-coding technique to estimate the income characteristics of HSA account holders.

"HSA plans provide coverage to a number of consumers of all ages and incomes across the country, and they represent an important choice for employers and individuals when looking at the portfolio of coverage options available," said Karen Ignagni, President and CEO of AHIP.

Key findings from the census include:

- There was an increase of approximately 1.9 million Americans enrolled in an HSA plan since January 2008. Previous AHIP census reports found that 6.1 million were enrolled in January 2008, 4.5 million were enrolled in January 2007, 3.2 million were enrolled in January 2006, and 1.0 million were enrolled in March 2005.

- 30 percent of individuals covered by an HSA plan were in the small group market, 47 percent of individuals covered by an HSA plan were in the large-group market, and the remaining 23 percent were in the individual market.

- A majority of HSA enrollees are covered by Preferred Provider Organization (PPO) products (83 percent) and Health Maintenance Organization (HMO) products (10 percent). In the individual market, almost 92 percent of enrollees in HSA plans were in PPO products, while approximately 85 percent of enrollees in large-group and 76 percent of enrollees in small-group HSA plans were in PPO plans.

- States with the highest levels of HSA/HDHP enrollment were California (854,000), Florida (524,000), Illinois (497,000), Texas (476,000), Ohio (464,000), and Minnesota (388,000).

Key findings from the income characteristics analysis include:

- Households with a wide range of incomes hold HSA accounts, with almost half (49 percent) of account holders living in neighborhoods with median incomes under $50,000 (incomes based on 2000 Census data).

- Average total deposits (including personal deposits, employer contributions, and interest) for all HSA accounts were $1,634 and average total withdrawals (including fees) were $1,063.

Learn more about Health Savings Accounts at HSA for America

Posted by Wiley Long at 01:43 PM | Comments (0)

June 16, 2009

Americans Want to Keep Health Savings Accounts as a Savings Option

OptumHealth Inc. has release a survey that shows Health Savings Account owners are extremely satisfied with their Health Savings Accounts and they believe their Health Savings Accounts should remain a savings option for Americans. More than 80 percent of respondents cite their ability to save for future health care expenses as the primary reason for opening and depositing money into their Health Savings Accounts. The survey also found that 70 percent of Health Savings Account participants make $75,000 a year or less in income.

"Health Savings Accounts have very strong support across a broad range of income levels and are helping people be better health care consumers," cited Chad Wilkins, CEO of OptumHealth.

OptumHealth’s survey found 82 percent of Health Savings Account (HSA) owners are satisfied with their accounts; 78 percent believe the continued availability of Health Savings Accounts should be part of any health care reform that may occur; and 74 percent agreed they would recommend an HSA to a friend or family member. Three out of 10 respondents said that they wouldn’t have health insurance if it were not for their Health Savings Accounts.

The study also showed that HSA owners are engaged with their financial and physical well-being. For example, 64 percent of the respondents said they inquired about generic options for medication and 47 percent indicated they asked their care providers about charges.

HSA owners also agree that people need to become more engaged in their health care. The survey found that 83 percent of respondents agreed people should research health care options and try to get the best price — just like they do for other major consumer purchases; 72 percent of respondents said that individuals should be responsible for helping to manage their own health care costs.

Employers are increasingly turning to consumer directed health plans (CDHPs) and Health Savings Accounts to provide health coverage to their employees and dependents. According to a Watson Wyatt Worldwide and National Business Group on Health survey, 51 percent of companies now have a CDHP in place, a 9 percent increase from last year. Inside Consumer-Directed Healthcare reported that the number of Health Savings Accounts grew about 40 percent year-over-year as of January 2009 and average savings balances grew 45 percent.

“With increased employer demand, more HSA use by consumers and the positive responses from our survey, it is clear that these accounts are valued as a tool to help people meet their health care needs,” Wilkins said.

The survey was conducted online by an independent research firm between Feb. 27, 2009, and March 20, 2009, with a random national sample of 500 HSA owners.

The survey measured satisfaction level, motivations for having an HSA and effects the accounts had on engaging people in managing a portion of their health care savings and spending. Participants had an HSA for at least one year, were covered by a high-deductible health plan and had an active HSA at the time of the survey. Margin of error for the survey was 4 percentage points or better with 95 percent confidence.

Health Savings Accounts are tax-free health spending and savings accounts available to individuals and families who have qualified high-deductible health insurance policies as determined by IRS regulation. OptumHealth Bank, Member FDIC, is one of the largest administrators of Health Savings Accounts, with about 500,000 accounts and nearly $800 million in HSA deposits and investments.*

Posted by Wiley Long at 11:01 AM | Comments (0)

June 07, 2009

Health Savings Accounts Are The Wave Of The Future

The need for reduced health care cost brought about the formation of Health Saving Accounts in 2004. Since then, their use has grown exponentially by American consumers. Most people will agree that health insurance is too expensive especially if you have a family to cover. Deciding which policy makes the most sense can be confusing with all the co-pays, premiums, deductibles, and features. This is where Health Saving Accounts can make it possible to get great coverage with a reduced premium and have a reserve expense account for when a major medical expense does occur.

Why Use A Health Savings Account?

Most consumers choose health plans with low to medium deductibles and co-pays for doctor visits and prescription drugs to defray the cash outlay for health related expenses. Deductibles are the amount you the consumer pay before your insurance kicks in to cover the difference. While these traditional plans can ease the pinch on the pocketbook at the initial appointment or at the pharmacy, you actually pay for these features in the form of a higher premiums.

The concept behind Health Savings Accounts is that you choose a plan with a high deductible because plans with higher deductibles have much lower monthly premiums. The savings in premium for the high deductible plan is then placed into a HSA account owned by you. The contributions to the HSA are 100% tax deductible from your income up to the legal limits and the money accumulates tax deferred sort of like an IRA for health care. As long as the money is used for any qualified health care cost then it is also tax free. The best part is the contributions are yours to keep and they continue to accumulate interest. If you change jobs or become self employed the HSA account goes with you, and unlike Flexible Spending Accounts that have the “use it or lose it provision” these accounts do not forfeit your contributions.

Is A Health Savings Account Right For Me?

Health Saving Accounts were originally created as a tax deductible medical insurance program with the self employed consumers in mind, but were quickly recognized as a viable solution to better manage health care cost for all Americans. Some advocates believe that Health Saving Accounts are geared primarily toward wealthy self employed families in good health who need a low cost plan for any major medical expenses. Clearly it makes more sense for somewhat healthy individuals to benefit more from the cash accumulation than someone who actively is tapping into their insurance because of health issues. The consumer market says these plans are growing in favor within only a few years over 3 million have signed up for HSA plans and that number is expected to be over 30 million by 2010. Determining if an HSA is right for you will require you to consider your current health insurance cost and how you feel about covering the smaller healthcare expenses in exchange for a lower premium. The savings in premium can be substantial and once you have fund accumulation you will have enough to cover doctor visits co-pays prescription and deductibles. The benefits of the HSA are twofold; Lower overall insurance premiums and a self managed tax deductible medical expense account. One of the greatest uses in our current economy with the suffering employment market would be the ability to use a HSA account to fund a short term medical plan for a consumer or family income earner who has lost their employer sponsored health insurance plan.

How Do I Enroll in an Health Savings Account Program?

Most major health insurers such as Assurant, Blue Cross Blue Shield, Humana, United Health Group Golden Rule and Aetna provide Health Savings Accounts right alongside their traditional medical insurance programs. Our HSA for America website has carrier links that spreadsheet the different plans side by side for you to compare. We also provide you a personalized comparison to show how you might save by making the switch from traditional plan to an HSA plan. Many of the carriers have already established bank accounts with debit cards allowing you to sign up for the programs all at the same time.

Health Savings Accounts are clearly a viable option and will likely continue to offer more features and options as more consumers learn about them and employers begin to introduce them. The long term benefit is better managed health care and lower overall cost to consumers.

Posted by Wiley Long at 10:36 AM | Comments (0)

June 04, 2009

What Health Savings Accounts Can Do For You

Health Savings Accounts were introduced in 2004 and allow individuals to pay for medical services upfront through funds they deposit tax-free into their personal Health Savings Account. A required insurance policy then kicks in for catastrophic expenses. Any unused funds build up from year-to-year and collect interest in the process.

Put simply, no other investment account has the tax advantages that Health Savings Accounts do. Throughout the life of a Health Savings Account its owners can withdraw funds for qualified medical expenses tax-free. Because of this, taxpayers should consider fully funding their Health Savings Accounts first, before any other type of retirement accounts.

With health care costs continuing to outpace wage increases and companies trimming retiree health benefits, financing health care has to be central to retirement planning.

The beauty of Health Savings Accounts is that they can be used to pay Medicare premiums, out-of-pocket expenses, long-term care insurance premiums, and many long-term care expenses, say researchers. Even better, Health Savings Accounts can do all of this tax-free.

However, if you don't end up incurring these types of expenses, you can still use your HSA funds for other purposes and pay only regular income tax on your withdrawals after age 65.

Learn more about Health Savings Accounts and their benefits at HSA for America.

Posted by Wiley Long at 11:42 AM | Comments (0)

May 26, 2009

Health Savings Accounts Come to Puerto Rico

Health Savings Accounts have now been established in Puerto Rico. Puerto Rico will now allow contributions to the accounts to be exempt from personal income tax, and will apply to the taxable years that commence on and after January 1, 2009. Under Health Savings Accounts, the insured will choose the provider and/or health service that they want to receive payment and will pay for those services with the funds that had accumulated in their Health Savings Account, covering up to the total annual deductible.

The employee and the employer both may make contributions to the Health Savings Accounts. Once the insured has covered the high annual deductible, either charging the HSA qualified expenses eligible for medical attention to the funds in the Health Savings Account or with another source of funds, coverage from the traditional medical plan will begin.

The Health Savings Accounts will allow annual contributions that are not considered income received by the taxpayer, that are deductible when taxed, and after the first year are converted into a savings vehicle with tax benefits. Upon reaching the age of 65 years, the owner of the Health Savings Account may withdraw the accumulated funds and use them for any purpose (it does not require a medical expense) without having to pay penalties, but will pay tax on the withdrawn amount. Amounts deposited in a Health Savings Account beyond the limits for each year are subject to a 6% penalty.

Posted by Wiley Long at 09:50 AM | Comments (0)

May 21, 2009

Study Shows Health Savings Account Contributions Increasing and More Employers Offering HSA Plans

In their annual survey of employer health benefits, the Kaiser Family Foundation and the Health Research & Educational Trust found that more employers are offering Health Savings Account plans and that employer contributions to Health Savings Accounts doubled since 2007.

The study showed that 13% of firms offering health benefits now offer a Health Savings Account Plan with an Health Reimbursement Arrangement in 2008. While the report notes that the increase does not represent a significant difference from the 10% reported in 2007, they do point out that there has been a statistically significant increase in the offer rate since the 7% reported in 2006.

As for the types of employers who have adopted Health Savings Accounts, the study found that firms with 1,000 or more workers are more likely to offer a Health Savings Account than smaller firms. Twenty-two percent of firms with 1,000 or more workers offer a Health Savings Account compared to 13% of firms with 3 to 199 workers or 15% of firms with 200-999 workers.

The study also found that workers enrolled in HSA-qualified plans on average receive an annual employer contribution to their HSA of $838 for single coverage and $1,522 for family coverage. These amounts are about double the amounts reported in 2007 ($428 for single coverage and $714 for family coverage), but this increase may be due in part to a change in legislation enacted by Congress in December 2006 that increased the maximum allowable annual HSA contribution. Although the increased amounts were allowed in 2007, due to the timing of the legislation, employers may not have had time to introduce higher contributions in 2007. When those firms that do not contribute to the HSA are excluded from the calculation, the average employer contribution for covered workers is $1,139 for single coverage and $2,067 for family coverage.

Here are some other key findings related to HSA funding:

* Small employers have significantly increased contributions: From 2007 to 2008, the amount contributed to Health Savings Accounts for workers in small firms increased from $415 to $1,041 for single coverage and from $677 to $1,862 for family coverage. There was no statistically significant increase in HSA contributions for workers in large firms for either single or family coverage.

* Not all employers are making contributions to employees’ accounts: In looking at employer contributions to Health Savings Accounts, it is important to note that not all employers make contributions towards Health Savings Accounts established by their employees. Twenty-eight percent of employers offering single or family coverage through HSA-qualified plans do not make contributions towards the Health Savings Accounts that their workers establish (covering 26% of covered workers enrolled in HSA-qualified plans for single or family coverage).

* But, the number not contributing is quickly decreasing: For single coverage, the percentage of firms that do not make a contribution to Health Savings Accounts established by their employees decreased from 66% in 2007 to 28% in 2008. The report notes, however, that the 2008 percentage is similar to the percentage that was reported in 2006 (37%).

This year, the survey included questions for those employers offering Health Savings Accounts on their opinions of the most successful outcome, biggest challenge, employee satisfaction, and primary reason for offering a Health Savings Account. Not surprisingly, forty-two percent of firms report that in their opinion, lower costs as the most successful outcome from offering a Health Savings Account.

Eighteen percent of firms reported helping employees engage in their health care as the primary reason for offering a Health Savings Account, with small firms (3-199 workers) being less likely (17%) than large firms (200 or more workers) (33%) to report this as their primary reason for doing so.

Health Plan Innovation Take: This report is more evidence that consumer-driven health care in the form of high deductible health plans associated with a tax-favored Health Savings Account has achieved significant acceptance among both large and small employers as a means of controlling the rise in health care costs.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 11:10 AM | Comments (0)

May 18, 2009

More Than Eight Million Now Enrolled in Health Savings Accounts

A new census released by America's Health Insurance Plans (AHIP) finds that Eight million Americans are now covered by Health Savings Accounts, an increase of more than 31 percent since last year. Health Savings Accounts were authorized starting in January 2004. Since then, AHIP has conducted a periodic census of its members participating in Health Savings Accounts.

Another report released found Health Savings Account (HSA) account holders have a broad range of incomes levels across the country. The report, "Estimated Income Characteristics of HSA Account holders in 2008", used a geo-coding technique to estimate the income characteristics of HSA account holders.

"HSA plans provide coverage to a number of consumers of all ages and incomes across the country, and they represent an important choice for employers and individuals when looking at the portfolio of coverage options available," said Karen Ignagni, President and CEO of AHIP.

Key findings from the census include:

* There was an increase of approximately 1.9 million Americans enrolled in an HSA plan since January 2008. Previous AHIP census reports found that 6.1 million were enrolled in January 2008, 4.5 million were enrolled in January 2007, 3.2 million were enrolled in January 2006, and 1.0 million were enrolled in March 2005.

* 30 percent of individuals covered by an HSA plan were in the small group market, 47 percent of individuals covered by an HSA plan were in the large-group market, and the remaining 23 percent were in the individual market.

* A majority of HSA enrollees are covered by Preferred Provider Organization (PPO) products (83 percent) and Health Maintenance Organization (HMO) products (10 percent). In the individual market, almost 92 percent of enrollees in HSA plans were in PPO products, while approximately 85 percent of enrollees in large-group and 76 percent of enrollees in small-group HSA plans were in PPO plans.

* States with the highest levels of Health Savings Account enrollment were California (854,000), Florida (524,000), Illinois (497,000), Texas (476,000), Ohio (464,000), and Minnesota (388,000).

Key findings from the income characteristics analysis include:

* Households with a wide range of incomes hold HSA accounts, with almost half (49 percent) of accountholders living in neighborhoods with median incomes under $50,000 (incomes based on 2000 Census data).

* Average total deposits (including personal deposits, employer contributions, and interest) for all HSA accounts were $1,634 and average total withdrawals (including fees) were $1,063.

For more information about the 2009 census and the income report, please visit www.AHIPResearch.org. For more information about Health Savings Accounts and how to find the best HSA plan for your personal situations, please visit HSA for America.

Posted by Wiley Long at 11:04 AM | Comments (0)

May 13, 2009

Health Savings Accounts Are a Great Way to Save Money on Health Care and Health Insurance

You need to look at your health insurance coverage the same way cost-cutting entrepreneurs do, whether you buy your health care coverage independently or through your employer. Buying coverage in the future won't stop at finding the best price. What you pay for your health insurance coverage will increasingly involve how well you personally manage your health.

According to a report last year by benefits consultant Watson Wyatt, nearly half of the 453 largest U.S. employers currently offer a Health Savings Account that can be used to pay a portion of medical expenses not covered under the companies health insurance plan.

Also, don’t be surprised if your employer or insurer is going to get tougher about you losing weight, quitting smoking or taking part in a monitored exercise plan.

Here are some ideas to help you take the first step in monitoring these costs:

Change your negative healthcare behavior:

Lowering the number on your bathroom scale will not only have immediate health benefits, it will also make your health insurance options and potential out-of-pocket costs more affordable over time. A Stanford University and Rand Corporation study reported that lifetime medical costs related to diabetes, heart disease, high cholesterol, hypertension and stroke among the obese are $10,000 higher than among the non-obese. It added that lifetime medical costs could be reduced by $2,200 to $5,300 following a 10 percent reduction in body weight.

Know what you’re buying:

Whether you buy your Health Savings Account insurance plan through an agent or your employer, insist that they explain exactly what you’re getting for your premium, and where deductibles do and don’t apply. That way, you’ll have a baseline when you buy your own coverage. If you’re purchasing your own HSA insurance policy, compare the premium savings from a higher deductible plan with your usage pattern of health services. What you save can often cover your high deductible.

Always research and discuss the potential cost of a diagnosis:

If your physician diagnoses a condition that requires tests, prescription drugs, a hospital stay or ongoing therapy, ask polite but detailed questions about what you’ll be charged, from the doctor’s bills to ongoing ancillary costs associated with treatment. Ask the doctor or his office manager if discounts can be negotiated through cash payments or other means. You also need to be careful that you’re not being charged a rate for uninsured patients when you are simply going to paying for all or part of the bill to get to your deductible. Last, consider asking doctors for generic options and samples of prescription drugs to extend your savings.

Make sure your exact spending is reducing your deductible:

Keep a binder or a filing system to monitor how this year’s out-of-pocket spending is reducing your Health Savings Account deductible. Your insurer’s total may not always be accurate or up-to-date. Also, make sure you understand which procedures are offered through your HSA plan that will be paid even though you haven’t paid up your deductible.

Check local pricing resources:

In non-emergency situations, you should always compare prices on treatments. Check with local medical boards and state health officials to see if they have online databases on costs for various medical procedures. Also, if there is a support group for your condition, talk to members about what they paid locally for care.

Be smart about emergency and non-emergency health visits:

Emergency-room visits tend to cost $300 to $1,000 compared with $150 at an urgent-care center and $35 to $45 at a convenience-care clinic in a drug store or some other location. First, make sure the alternatives to hospital emergency room care are acceptable for your illness. Write yourself a note at some point to check out these options in your community so you understand what they offer, what their hours of business are, and under what conditions you’d choose them. In particular, make sure the facility and the provider are in your health plan's network so whatever you pay out-of-pocket counts toward your deductible. Also rely on your insurer's 24-hour advice hotline for guidance on where to go for care. Either tape that call or keep a written record of it in case you have a claim denied.

Talk to a financial advisor about planning for long-term care:

If you or a loved one are diagnosed with a chronic illness, that’s a financial issue that requires a plan. As tough as it may be to focus on money issues at a stressful time, make an appointment with a tax professional or a Certified Financial Planner professional to discuss affordability options that will safeguard your assets, including Health Savings Accounts that can backstop out-of-pocket costs on high-deductible policies.

Learn more about Health Savings Accounts at HSA for America

Posted by Wiley Long at 10:53 AM | Comments (0)

May 08, 2009

Health Savings Accounts Frequently Asked Questions

One of the best way to save money on your healthcare costs is to use a Health Savings Account to supplement your current health insurance plan. Your Health Savings Account can also have your money working for you by earning interest, along with saving money on your health care costs. And, you can save your Health Savings Account money tax-free.

If you have a high-deductible health insurance plan and have not yet open a Health Savings Account, you need to learn more about the advantages of Health Savings Accounts. Check out these Top 10 Health Savings Account Frequently Asked Questions to get a jump-start on understanding Health Savings Accounts:

1. How do I start a Health Savings Account (HSA)?

First, you have to have a qualifying health insurance plan. A qualifying health insurance plan is one that carries a high deductible. Each year what is considered a high-deductible health insurance plan changes, but generally it would be a deductible that is not considered in the normal range for a health insurance plan. If you think you have a high-deductible health insurance plan then you can contact your employer, health insurance company, or a number of private insured banks and credit unions locally or online to find out about setting up a HSA. Sometimes employers help contribute to Health Savings Accounts so make sure to see if yours does.

2. What if I switch jobs, do I lose my money?

No. The Health Savings Account is yours. Whatever money you contribute to your HSA you keep, just as you would in a savings account. Even if you don't use all your HSA money in one given year, the money will just roll-over to the next year for use.

3. Do I pay taxes on the money before it is put into my Health Savings Account?

No, the money goes into your HSA account tax-free if your employer will set-up pay check deductions for you. If not, then when you prepare your federal income taxes you will be able to take a deduction for the money you contributed to your HSA that year. When you withdraw your Health Savings Account money to pay for any qualifying expenses, it is withdrawn tax-free.

4. Can I have some examples of HSA qualifying expenses?

Here are some examples of HSA qualifying expenses: prescription medicines and eye glasses, office visit co-pays, chiropractors, dentists, orthodontists, over-the-counter meds such as aspirin and antacids, birth-control (over-the-counter or prescription), and laser eye surgery to name a few. There are many more things that you can use your money for so when you get a HSA plan, you will need to ask for a list of covered expenses.

5. What happens if I lose my health insurance?

Once you have money in your HSA, you can continue to use it even if you do not have a high-deductible health insurance plan anymore, but you cannot keep contributing money to your health savings account.

6. Can I use my HSA money to pay for my health insurance premiums?

You can use your HSA money to pay for your health insurance premiums while you are collecting federal or state unemployment benefits. You can also use your HSA money to pay for COBRA premiums.

7. What if I need medical care in another country... can I use my HSA money there?

Yes, your HSA money can be used for the same medical expenses anywhere and in another country.

8. How much can I contribute to my HSA account?

That changes yearly but as of 2009 a single person could contribute up to $3,000 per year and a family could contribute up to $5,900 per year.

9. Can my HSA money be invested?

Yes. Your health savings account money can be invested similar to a 401K.

10. When I die, do I lose my HSA money?

No. You can name a beneficiary to receive your health savings account money.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 10:36 AM | Comments (0)

May 05, 2009

What Becomes of Your Health Savings Account if You Get Laid Off

The good news for people with Health Savings Accounts is they don't need to panic about their healthcare if they get laid off. The money in your Health Savings Account remains yours even after you lose or leave your job, unlike funds in a flexible spending account. So you don't need to rush to the dentist or eye doctor to drain your Health Savings Account before your job is terminated.

You can keep the money in your current Health Savings Account, or you can roll it over to another HSA administrator without having to pay taxes on the move -- a lot like an IRA rollover. The money can then continue to grow in the Health Savings Account and can be used tax-free for future medical expenses in any year... even if you no longer have a high deductible health insurance policy.

But you must have a high deductible health insurance policy to make new contributions, whether you continue your former employer's plan through COBRA or you purchase your own high deductible policy after you leave your job. A high deductible policy is a good option if you've been laid off because it can help keep your premiums low. If you get another job without a high deductible policy, you won't be eligible to make new contributions to your HSA.

You can make HSA contributions at any time during the year, and you have until April 15, 2010, to make your 2009 HSA contributions (and remove any excess contributions). The money you put into an HSA is tax-deductible and grows tax-free for future medical expenses.

HSA money usually can't be used to pay for health insurance premiums, but there's an exception for people who lose their jobs: You can use the HSA money for health insurance premiums (whether for COBRA coverage or any other health insurance) if you're receiving unemployment compensation. That can be a way to pay your premiums with tax-deductible money.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 08:58 AM | Comments (0)

April 23, 2009

Don't Look Now, Health Savings Accounts Are Gaining Momentum

Many employers are using cash incentives to entice employees toward consumer-driven health plans, such as Health Savings Accounts and Health Reimbursement Arrangements. Employees may pay as much as 50 percent less for premiums than those enrolled in more traditional point-of-service or preferred provider plans.

Health Savings Account plans typically entail a tax-exempt account for paying qualified health expenses, with a high deductible component for coverage in case of a major medical problem. In most cases, both the employer and the employee may contribute to the account, and unused money can be carried over to the next year.

By giving employees a more direct stake in their use of health care, employers benefit, too, with an average 1 to 2 percent smaller cost increases year to year, said Mr. Nussbaum, speaker at yesterday's Pittsburgh Business Group on Health conference on emerging trends in the health benefits arena.

"The best performers are consistently driving their costs lower," he said.

Although companies' health-care cost increases have slowed, from 14.7 percent in 2002 to 6 percent in 2008, they are still twice the inflation rate and an ever-present concern for businesses.

In a 2008 survey of almost 500 companies, Mr. Nussbaum said, nearly 10 percent fewer employers say they're confident they'll be able to offer health benefits for the next 10 years than the previous year, "the first time that's happened in 14 years. And that's a substantial drop."

One major driver in rising health-care costs is prescription drugs. Jack Bruner, CVS/Caremark executive vice president for strategic development and marketing, told the gathering of business executives that one problem is simple patient compliance. Nearly one-third of original prescriptions for chronic conditions never get filled, he said, and 70 percent stop refilling scripts the first year, he said.

The reasons may vary from concerns about the ongoing cost to not understanding how long they're supposed to take the medication.

Mr. Bruner said CVS can help patients through on-site counseling and automated renewals. Taking a medication as prescribed, for as long as prescribed, may prevent more serious -- and more expensive -- health problems later.

While cautioning that "there's no one silver bullet that does everything," Mr. Bruner offered several suggestions that together might save up to 20 percent in pharmaceutical costs. They include accelerating the move to generic drugs, careful monitoring of expensive specialty drugs and early identification of health risks.

One commonly cited rule of thumb is that every percent increase in generic drug use translates into a similar-sized reduction in pharmacy costs.

Posted by Wiley Long at 10:49 AM | Comments (0)

April 21, 2009

Satisfying Your Family's Health Needs With A Health Savings Account

In today's health insurance market, making sure that your family is able to stay healthy partly depends on having a good health insurance program. A Health Savings Account can do just that. With a Health Savings Account, you will have reduced insurance rates because of a higher deductible, a tax deferred savings program, broader coverage, and you stay in control of your Health Savings Account dollars. Here are some of the details of the benefits you will find with Health Savings Accounts:

Reduced Rates

By getting a high deductible HSA health insurance plan, you are able to greatly reduce your monthly premiums. This is an especially good way to go if you are younger and are currently in pretty good health. The deductible amounts are pre-determined by the government, and you are required to have deductible amounts between $1,150 and $5,800 for singles, and between $2,300 and $11,600 for families in 2009.

Savings Are Tax Exempt

One of the great benefits of a Health Savings Account is that you enjoy tax-free income (and interest) on the money you have in your Health Savings Account. You can put into the plan money that comes off the top of your taxes. There are limits, though, and for singles it is up to $3,000, and for families it is $5,950 in 2009. A little extra benefit is that you are able to take off of your taxes any money that is deposited into the account all the way up to April 15th. So, if you are coming up to tax time, and find you need to reduce your taxes some more, you can put it into your Health Savings Account, and find the tax break you need.

Better Coverage

Health Savings Accounts have an extra real nice feature - they cover more. Some things that you may not have been covered for under another type of policy, you may find that you are covered for with your HSA plan. This could actually allow you to get a better coverage for less. Things like dental coverage, therapy, even non-prescription medicines and some alternative treatments may also be covered, and even some mental illness treatments, too.

You Keep Control

Under an HSA, you are the one in control of the money. It is yours to use. You can take money out of the account when you want, but only the money that is used only for medical purposes is tax-exempt. Generally, you will be given a card, like a credit card, that gives you access to the account. Whenever you use money from the account, the insurance company automatically gets a receipt, and it is subtracted from your account, and your deductible - and it remains tax exempt.

Like any other insurance policy, once you have paid the deductible amounts, the rest is up to the insurer to pay. By having the high deductible you reduce the premiums considerably. The savings account can also provide a good hedge for your medical insurance program for the future, too, because any money not used toward the deductible remains your money to use next year, if you need it. On the other hand, the money in your HSA might also be used to provide some money for retirement - assuming you maintain your good health.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 10:05 AM | Comments (0)

April 17, 2009

Health Savings Accounts Are Thriving During Economic Downturn

According to data from San Francisco-based Canopy Financial Inc. individual Health Savings Account balances have increased 33%, and family Health Savings Account balances have increased about 12% between the first quarter and fourth quarters of 2008.

The study also found that employees contributed more money to their Health Savings Accounts more than their employers did. In the fourth quarter, employees contributed an average monthly payment of $206 to their family Health Savings Account, while employers contributed $133. Individual Health Savings Accounts fared similarly; Employees contributed $111 on average, while employers contributed $69.

“What we've seen throughout 2008 is that consumers who select Health Savings Accounts to manage their health care spending are not simply using these accounts to pay for their immediate health care needs,” Vik Kashyap, chief executive of Canopy Financial, said in a statement. “They are also funding their Health Savings Accounts above and beyond their employer contributions and using them as long-term savings and investment vehicles.”

For more information on Health Savings Accounts, visit HSA for America.

Posted by Wiley Long at 10:03 AM | Comments (0)

April 13, 2009

Laid-Off Workers Turning to Health Savings Accounts

Affordable healthcare plans are becoming increasingly important as millions of Americans lose their jobs. Health Savings Accounts have become popular tools to help employees pay for the cost of their healthcare, even when they have to use COBRA plans.

An estimated 2.6 million Americans lost their jobs in 2008 and thousands more are expected to lose their jobs in 2009. With many Americans accustomed to getting their healthcare coverage through their jobs, millions now turn to alternative coverage options so they can continue to have affordable healthcare. One of the most affordable and practical health care coverage options is a Health Savings Account (HSA).

An HSA is a tax-deductible savings account that lets individuals set aside money to cover the cost of their healthcare. Like with an IRA, individuals can invest the funds from their Health Savings Accounts into high interest rate mutual funds, stocks, money markets, and more. The growth on those investments is tax-free and the money can be used to pay for qualifying medical expenses, including dental expenses, mental therapy, physical therapy, alternative treatments (such as acupuncture), transportation and lodging related to medical expenses, and even non-prescription medications.

We're finding an increase in interest for our HSA plans. As Americans are losing their jobs, they are recognizing that they still need to find a way to afford healthcare for themselves and their families. An HSA is a great addition to a high-deductible insurance plan, like a COBRA plan, because it gives individuals a tax deduction when they set aside money for their healthcare. The money grows tax-free in the savings account. Then, if they need the money for something else down the road that is not related to their healthcare, they can still have access to that money.

Moreover, according to a recent survey by Information Strategies, Inc., 50% of individuals on COBRA that also have an HSA policy are using their HSA funds to pay for their high COBRA premiums each month. Only 51 percent of survey respondents said they have actively investigated Health Savings Accounts as an alternative healthcare benefit. We are hoping that more laid-off workers take a look at HSA plans as a way to cut their health insurance costs. Health Savings Accounts not only benefit individuals, but they can also be used to cover healthcare costs for an entire family.

Posted by Wiley Long at 10:49 AM | Comments (0)

April 09, 2009

Companies Moving From Health Insurance To Health Savings Accounts

One of the largest issues facing the nation right now is the rising costs of health insurance. Many people can not afford to buy health insurance, because the premiums have been driven up to unimaginable heights over the last decade or so. Many companies are trying to help shoulder the burden of the large premiums by paying a certain percentage of the total cost every month for the employee. Many of these companies have tried to work around this problem in many ways. Health Savings Accounts are turning out to be one of the better solutions to this problem.

Larger companies have tried to dodge the growing health insurance premiums by changing the requirements for employees to receive benefits. Many companies are making it harder for people to receive these benefits. Some companies are requiring the employee to work more hours per week than they used to have to work to receive benefits. Other companies are requiring that an employee work for the company for a longer period of time, before they are eligible for benefits.

Both of these approaches will save the company on health insurance costs, because they will not have to cover as many employees. However this is not the best approach for employees, because it makes it that much harder for them to obtain health insurance. Many other companies are trying to lower health insurance costs a different way.

Some companies are offering inexpensive health insurance, and then supplemented it Health Savings Accounts. The health insurance has very low premiums, but the deductible, and payouts for the health insurance were not very good. However the company would set their own deductibles, and co-pays, and then they would take money out of their Health Savings Account to reimburse the employee the difference. This is a very good system, because companies are not paying as much money out each month on premiums. They would only have to spend money from the Health Savings Account when the employee actually needed it. The goal is to cut out the health insurance plan completely when the Health Savings Account had grown large enough. At that time, the company would then save a considerable amount of money in premiums every month.

Posted by Wiley Long at 11:04 AM | Comments (0)

March 29, 2009

Why Health Savings Accounts Are Catching On

Tracey Jihad has five kids and a chronic illness, reason enough to worry about rising health care costs. So she was apprehensive when her employer announced that it was starting the transition to a new kind of high-deductible health insurance with Health Savings Accounts.

Four years later, Jihad is sold on the way the new coverage lets her control health-care decisions, and hold down costs for herself, her coworkers and her employer. "Especially with the economy, this shows that we can be proactive about reducing health care costs," said Jihad.

Tracey Jihad is a medical records data coordinator for LifeSource, a St. Paul-based nonprofit that coordinates organ donations in the Upper Midwest. What sold her on the new Health Savings Account coverage was the careful way that LifeSource helped employees through the transition. The organization didn't just shift medical costs to them, it showed how they could all save money. It didn't just dump medical decisions in their laps, it taught them how to make smart choices.

The rapid growth of high-deductible health plans has thrown a spotlight on the way employers make what can be a tricky transition. HSA plans require people to pay a larger share of medical costs out of pocket, but let them set aside pretax money in their Health Savings Accounts to cover some of the costs.

Advocates hope HSA plans will help rein in health care costs by encouraging consumers to use medical services more prudently. But many experts worry that consumers will scrimp on needed care or valuable preventive services, saving money now but driving up health costs in the long run.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 04:03 PM | Comments (0)

March 26, 2009

Report Finds Participation in Health Savings Account Plans Encouraging

According to a new report by the Manhattan Institute, Health Savings Accounts tied to HSA-qualified health insurance plans with high deductibles have gained participants at a higher rate than individual retirement accounts (IRAs) did in their early years. Moreover, data studied by the report's author suggest that health coverage under plans tied to Health Savings Accounts "has the potential to expand at least as sharply over time as IRAs and defined-contribution retirement plans did."

The report said that HSA-qualified high-deductible health insurance plans are now used by more than 6 million U.S. residents.

HSA Account holders and employers are allowed to contribute untaxed funds to their Health Savings Accounts under the Medicare Modernization Act of 2003 as long as the insured individual is not covered by other health insurance or eligible to be claimed as a dependent on someone else’s tax return. Distributions from the account used to pay for “HSA qualified medical expenses,” including over-the-counter drugs, are tax-free.

These accounts are designed to be more attractive as a savings mechanism than medical spending accounts or health care reimbursement accounts set up under previous laws. Contributions to Health Savings Accounts not expended by the end of the year can be rolled over indefinitely, and they can be used to pay for any qualified medical expenses incurred after the account was established. In addition, they have the potential to provide more tax savings than IRAs or 401(k)s, for which either contributions are made with pre-tax dollars (in traditional accounts) or withdrawals are made tax-free (from Roth accounts) — but not both.

The Manhattan Institute study’s author, Senior Fellow Benjamin Zycher, compared the rate of adoption for Health Savings Accounts in their first four years with early participation in IRAs and other defined-contribution retirement plans. While acknowledging that the data available on early participation in IRAs as a percentage of all pension plans are difficult to interpret and don’t match the data on participation in Health Savings Accounts as a percentage of all health insurance, Zycher found that the percentage of people covered by private insurance who were enrolled in HSA-qualified plans in their early years closely corresponds to the percentage of total retirement assets found in IRAs in their beginning years. “The data on the whole suggest that HSA-qualified health coverage has the potential to expand at least as sharply over time as IRAs and defined-contribution retirement plans did, assuming conducive legal and regulatory developments,” he wrote.

The report noted that relatively few consumers are “extremely” or “very” familiar with Health Savings Accounts, suggesting there is “room for improvement” in adoption of these plans. On the positive side, the study found that premiums for HSA Insurance are 10 percent to 40 percent lower than those for other types of plans, and that a wide range of preventative services are available to policyholders on a “first-dollar” basis, without having to meet the plans’ high deductibles. Moreover, it said, “less than half the funds in HSA accounts in 2007 were expended on health care, demonstrating these accounts’ viability as savings vehicles.”

Zycher noted that Congress’s purpose in authorizing tax-free accumulation and withdrawal of funds in Health Savings Accounts to pay for medical care was to encourage more people to become “consumers” of health care services so they would be more cost-conscious and help bring the overall costs of medical care down over time.

To accomplish that goal, participation in High Deductible Health Plans (HDHPs) must grow at a meaningful rate, and he suggested several policy changes that would likely improve the plans and make them more appealing to consumers. For example, he suggested making employers’ contributions to Health Savings Accounts exempt from payroll taxes and allowing individuals to deduct the premiums for their HDHPs from their taxable income. In addition, he recommended lowering the deductibles for hospital and chronic care, since these are not generally discretionary expenditures and subjecting them to the high deductibles is unlikely to discourage excessive consumption of these services.

Also important, according to Zycher, is making the plans easier for people to understand. “This country’s experience with retirement plans suggests that greater legal and regulatory simplicity combined with looser eligibility standards and more generous limits on the contributions” could make the plans more popular, he wrote.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 10:54 AM | Comments (0)

March 09, 2009

Data Shows Gaining Popularity of Health Savings Accounts

The Center for Medical Progress at the Manhattan Institute has released a new report that finds Health Savings Accounts and HSA-qualified health insurance coverage have the potential to reduce health care costs and have expanded in popularity over time. In "HSA Health-Insurance Plans After Four Years: What Have We Learned?" Manhattan Institute senior fellow Benjamin Zycher lays out recommendations to simplify regulation of Health Savings Accounts and to strengthen financial incentives to participate in Health Savings Accounts.

The goal of Health Savings Accounts is to provide consumers with more control over their healthcare spending and give individuals increased incentives to economize on their consumption of health-care resources. Although the data are still early, Zycher argues that Congress should continue to support and improve HSA- eligible insurance plans as a valuable healthcare reform tool.

The findings of this report indicate that Health Savings Accounts have potential to cut costs while maintaining quality care:

- Premiums for HSA insurance plans are significantly lower than those for other types of plans, by about 10 percent to 40 percent

- Participation in HSA/high-deductible health coverage, as a proportion of all health coverage, has grown slightly faster than the proportion of total retirement assets that IRA assets alone represented in the early years of IRA eligibility

- 6.1 million people have chosen to be covered by HSA and other high-deductible plans as of 2008

- Deductibles for HSA plans recently have risen much more slowly than the deductibles for the other types of health coverage plans

- A wide range of preventive-care services count toward plan deductibles (or are covered on a "first-dollar" basis) under most HSA-qualified policies

Policy Recommendations:

Tax policy:

- Payroll taxes now imposed on amounts employees direct to their Health Savings Accounts should be lifted

- Insurance premiums for HSA-qualified insurance purchased in the non-group market should be made deductible from income taxes

- Funds in an HSA account should be allowed to cover all "HSA qualified medical expenses," as the tax code defines them, so long as they have been incurred after HSA-qualified coverage begins

- Sums paid by patients to their primary-care physicians for the right to receive medical services on an as needed basis should be deemed qualified medical expenses

Insurance policy:

- Policyholders should be permitted to pay insurance premiums with funds deposited in Health Savings Accounts

- The maximum contribution that an HSA participant is allowed to place in his HSA account should be raised to match the limit on out-of-pocket expenditures, so that he does not have to pay out more than he has put in

- Spouses aged 55 and over should be allowed to make extra contributions to a single health savings account up to the maximum allowable for a couple, instead of being required to establish a second account

- High deductibles for hospital and chronic care should be lowered, since they are unlikely to discourage excessive consumption of health-care services, because of the non-discretionary nature of treatment for acute or chronic conditions

Legislative:

- Congress should allow participants, after turning 65, to continue to contribute to their Health Savings Accounts, even if they have become Medicare beneficiaries

- Simplification of HSA-qualified insurance would enable clear comparisons with other types of plans, help familiarize consumers with its features (with the assistance of insurers and employers)

Health care costs are continually rising and policymakers are looking to reform our health care system. The early data on Health Savings Accounts suggests that use of these health insurance policies may achieve lower costs and greater savings for health care consumers. Reforms of the tax policy and insurance regulations should be put in place so consumers can more easily understand how Health Savings Accounts function, allowing them to have greater control over their healthcare choices.

Visit HSA for America for more information on Health Savings Accounts and HSA insurance instant quotes.

Posted by Wiley Long at 09:17 AM | Comments (0)

March 05, 2009

Free Guide to Health Savings Accounts Explains Benefits

Health Savings Accounts are the most powerful weapon for individuals and small to medium-sized employers to slice healthcare costs without reducing coverage... and they don't need to be confusing.

The Consumer's Guide to Health Savings Accounts report clears up HSA mysteries with step-by-step instructions on how an HSA can be used creatively and effectively. The guide provides a case study with before-and-after costs, a comparison of benefits and costs, how to find the best plans, how to decide on an HSA Administrator, and pitfalls to avoid.

An HSA consists of the Health Savings Account itself, which lets employees and/or employers set aside tax-free savings to pay out-of-pocket medical expenses, and an associated qualified high-deductible healthcare plan.

Most US employers could be reaping big advantages from an HSA, but only about 6 percent do. Individuals are also starting to see the huge benefits of these plans, but many are still confused. Our report will help clarify any questions you still may have.

"The Consumer's Guide to Health Savings Accounts" is available free for download at HSA for America.

Posted by Wiley Long at 10:38 AM | Comments (0)

March 01, 2009

Learn How Health Savings Accounts Work

Jenny Thomas checked into her local hospital to deliver her first child. Unanticipated complications necessitated an emergency surgery. Fortunately both she and the baby were fine. But if it hadn’t been for her family’s Health Savings Account (HSA), she could have ended up owing the hospital tens of thousands of dollars.

An HSA is smart savings plan that you use for unanticipated medical expenses. Usually, money that is saved in the plan comes out of your paycheck before payroll taxes are computed, so you maximize your savings rate.

Furthermore, any income that the HSA plan itself generates (such as from interest or investment appreciation) is also tax free, so it grows fast. Some employers even contribute extra matching cash to the plan to encourage you to save.

In most parts of the country, to be eligible for an HSA you also need to hold a High-Deductible Health Plan (HDHP). An HDHP is a plan where the deductible – that is the amount that you pay out of pocket, before the insurance "kicks in" is somewhat higher that what you might have seen before: usually in the neighborhood of $2,000 to $3,000. The big idea behind the HSA/HDHP combo is that the premiums on the high-deductible plan are so much lower that even though you pay the first couple of thousand "out-of-pocket" – actually out of your HSA – you save money in the long run over a traditional plan.

Hundreds of banks, credit unions and insurance companies offer Health Savings Accounts, and it’s easy to sign up. Once you’re enrolled, you can use the money in the account for almost any approved medical, dental, vision or disability health care or expense.

Health Savings Accounts differ from one another mostly in the ways they grow. Some Health Savings Accounts grow like traditional savings accounts, with interest compounding daily. Other Health Savings Accounts let you be more aggressive and pick money market funds, mutual funds or other investment vehicles so that you can maximize the growth of the account. It’s up to you, and you should make sure you understand the investment choices available to you before you select your HSA institution.

After you have opened an HSA, managing the account is pretty easy. You set up automatic deductions from your paycheck, usually totaling an annual amount less than your HDHP deductible. You then invest your accumulating HSA funds in interest-bearing accounts, stocks, bonds and/or mutual funds, depending on the choices available to you at your HSA institution. Returns on these investments are tax-free, so they compound fast! If, in some year, you don’t use the cash, it automatically gets carried over to the next year. So in this way Health Savings Accounts are different from "Flexible Spending Accounts" which typically follow a "use it or lose it" approach.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 11:03 AM | Comments (0)

February 23, 2009

Consumers Turn to Low Cost Health Savings Accounts to Save Money

Millions of consumers are switching to high-deductible health insurance plans that work with Health Savings Accounts as a way to reduce the cost of their health insurance. In addition to reducing health insurance premiums, Health Savings Accounts can also help to lower taxes and provide a means for individuals to grow their savings even more.

As the economy becomes increasingly unstable, consumers are looking for ways to save money wherever possible - especially on the high cost of health care and health insurance plans. A large number of consumers are switching to high-deductible Health Savings Account (HSA) plans from low-deductible, higher rate health insurance plans.

When individuals and families enroll in high-deductible HSA-qualified plans, their health insurance premiums can be reduced by as much as 40 percent off of the cost of conventional co-pay health insurance plans. The switch to an HSA plan may save members thousands of dollars each year off of their healthcare costs. Plus, HSA plans also help to reduce the amount of taxes people have to pay each year.

We're finding that has been is a huge surge over the past three to four months in the amount of inquiries and enrollees into our HSA programs. Our clients are looking for ways to continue to receive high quality healthcare while also saving as much of their money as possible. The HSA option is viable for just about every one of our clients and can help to ensure that they are able to save money and still get a high level of health care.

Also, when people enroll in an HSA plan, they can roll their premium savings into tax-deferred investments that work similarly to IRAs. HSA plan members can set aside money in small increments that can be used for current or future healthcare costs. Just like any investment, they can continue to contribute to their Health Savings Accounts for life so that they will have available funds when they need them, even if they don't need them now. Contributions to the HSA are tax-deductible, and the money growth is never taxed if it is used for an HSA qualified medical-related expense.

At HSA for America, we offers a variety of HSA plans for individuals, families, and small businesses. For more information about plans from HSA for America, visit: http://www.health--savings--accounts.com

Posted by Wiley Long at 10:25 AM | Comments (0)

February 20, 2009

Early Data Suggests Health Savings Accounts Are Gaining Popularity And May Cut Healthcare Costs

A new report finds that Health Savings Accounts have the potential to reduce health care costs and have expanded in popularity over time. In the report titled "HSA Health-Insurance Plans After Four Years: What Have We Learned?" released by the Center for Medical Progress at the Manhattan Institute, senior fellow Benjamin Zycher lays out recommendations to simplify regulation of Health Savings Accounts and to strengthen financial incentives to participate in Health Savings Accounts.

The goal of Health Savings Accounts is to provide consumers with more control over their healthcare spending and give individuals increased incentives to economize on their consumption of health-care resources. Although the data is still early, Zycher argues that Congress should continue to support and improve HSA-qualified health insurance plans as a valuable healthcare reform tool.

The findings of the report indicate that Health Savings Accounts have potential to cut costs while maintaining quality care:

- Premiums for HSA qualified policies are significantly lower than those for other types of plans, by about 10 percent to 40 percent

- Participation in HSA/high-deductible health coverage, as a proportion of all health coverage, has grown slightly faster than the proportion of total retirement assets that IRA assets alone represented in the early years of IRA eligibility

- 6.1 million people have chosen to be covered by HSA and other high-deductible plans as of 2008

- Deductibles for HSA-qualified plans recently have risen much more slowly than the deductibles for the other types of health coverage plans

- A wide range of preventive-care services count toward plan deductibles (or are covered on a "first-dollar" basis) under most HSA-qualified policies

Policy Recommendations:

Tax policy:

- Payroll taxes now imposed on amounts employees direct to their Health Savings Accounts should be lifted

- Insurance premiums for HSA-qualified health insurance purchased in the non-group market should be made deductible from income taxes

- Funds in an HSA account should be allowed to cover all "qualified medical expenses," as the tax code defines them, so long as they have been incurred after HSA-qualified coverage begins

- Sums paid by patients to their primary-care physicians for the right to receive medical services on an as needed basis should be deemed qualified medical expenses

Insurance policy:

- Policyholders should be permitted to pay insurance premiums with funds deposited in Health Savings Accounts

- The maximum contribution that an HSA participant is allowed to place in his HSA account should be raised to match the limit on out-of-pocket expenditures, so that he does not have to pay out more than he has put in

- Spouses aged 55 and over should be allowed to make extra contributions to a single health savings account up to the maximum allowable for a couple, instead of being required to establish a second account

- High deductibles for hospital and chronic care should be lowered, since they are unlikely to discourage excessive consumption of health-care services, because of the non-discretionary nature of treatment for acute or chronic conditions

Legislative:

- Congress should allow participants, after turning 65, to continue to contribute to their Health Savings Accounts, even if they have become Medicare beneficiaries

- Simplification of HSA-qualified insurance would enable clear comparisons with other types of plans, help familiarize consumers with its features (with the assistance of insurers and employers)

Health care costs are continually rising and policymakers are looking to reform our health care system. The early data on Health Savings Accounts suggests that use of these health insurance policies may achieve lower costs and greater savings for health care consumers. Reforms of the tax policy and insurance regulations should be put in place so consumers can more easily understand how Health Savings Accounts function, allowing them to have greater control over their healthcare choices.

The Manhattan Institute, a 501 (c)(3), is a think tank whose mission is to develop and disseminate new ideas that foster greater economic choice and individual responsibility.

Posted by Wiley Long at 09:45 AM | Comments (0)

February 11, 2009

A Basic Overview of Health Savings Accounts

Health Savings Accounts are becoming more of a need these days
than a luxury. You must be enrolled in a high deductible health insurance plan in order to qualify for a Health Savings Account (HSA). Since Health Savings Accounts have been around, millions of people have qualified and gotten one. The trend should only continue to raise as more and more employers and companies offer this benefit as a bonus to their medical plans. Some companies aren't quite there yet but many have jumped on the bandwagon. There are some basic rules that can help an individual or corporation decide to enter the HSA market:

To establish an HSA, there are some rules and regulations. It is like establishing an individual retirement account (IRA) in most cases. In fact the documents are very similar and the procedure as well. An HSA trustee (or HSA Administrator) can add terms to their agreement regarding the effecting policy and procedure of their HSA. These terms can include any of the following but that may not be all that is required. Included in your agreement could be definitions, fees and expenses, amendments, disqualifying provisions, investment options, distributions, transfers and rollovers, reports and records, termination and/or resignation, and liability protection. There might be more of less of these conditions depending on the insurer.

HSA eligibility requires you to have an Internal Revenue Code to even desire to be eligible. You must be enrolled in a high-deductible medical care plan. So, people who don’t pay a deductible or it is very low, do not qualify for this benefit. Some exemptions do apply of course but you would need to contact the right person to find out. You must not be able to be claimed as a dependent for anyone else or on Medicare. To qualify your deductible needs to be for an individual a minimum or $1150, and your out of pocket expenses can’t exceed $5,800 for that year. For a family, the deductible needs to be a minimum of $2300 and the out of pocket portion can’t exceed $11,600 per year. There is a cost of living deduction as well and your agent to better save you money will adjust things. Many organizations require that you prove you are eligible prior to a contract. It is the individual asking for the HSA that must figure out that they qualify or might qualify.

The yearly contribution can’t exceed the deductible amount or combination with out of pocket expenses. As long as the individual has the high-deductible health plan they are qualifying. If you lose this plan, you will not be eligible for that month or period of time. If you are married and have separate high-deductible health plan, it is the lowest deductible amount that the family as a whole can meet. There are no combining deductibles to get a higher benefit. If you qualify, you can establish a regular contribution, a rollover contribution, or a transfer contribution plan. For the money to be deductible for a specific tax year, one must file by the deadline to receive the benefits. If an eligible individual’s employer contributes to his or her HSA, the employer, not the HSA owner, is entitled to a deduction.

An HSA administrator or trustee reports the contributions on IRS Form 5498-SA, HSA, Archer MSA, or Medicare Choice MSA Information. Copies of the report are due to each participant and the IRS by May 31 of each year. The owner is responsible for reporting the contribution amount on the proper forms to be submitted and file them with the income taxes that year. The distributions are to be made by the owner, if different than the participant. These will tax-free if used to pay for, or reimburse qualifying medical expenses that occurred after putting the plan into effect. These expenses include and could exceed the diagnosis, cure, treatment, or prevention of disease, prescription and certain nonprescription drugs, and transportation and certain lodging costs primarily for and essential to qualified medical care and certain qualified long-term care services. It is an HSA owner’s responsibility to determine the taxability of an HSA distribution and whether it is legitimate. The guidance of a tax or legal professional may be necessary to determine whether an expense is a qualified medical expense to avoid penalties.

To learn more about Health Savings Accounts, visit: http://www.health--savings--accounts.com

Posted by Wiley Long at 11:36 AM | Comments (0)

February 02, 2009

Health Savings Account 2009 Information

Guest writer Bill Randell explains his experience with Health Savings Accounts and what you need to know about them heading into 2009:

This year we switched to a high-deductible health plan that enabled us to open a Health Savings Account (HSA). For 2008, the IRS has the following requirement for HSA-eligible high-deductible health plans:

Single/Self-Only HSA Coverage -
* Minimum Annual Deductible: $1,100 ($1,150 for 2009)
* Maximum Out-of-Pocket Expenses: $5,600 ($5,800 for 2009)

Family HSA Coverage -
* Minimum Annual Deductible: $2,200 ($2,300 for 2009)
* Maximum Out-of-Pocket Expenses: $11,200 ($11,600 for 2009)

On May 1 of last year we had narrowed our choices down to two HSA plans. The first option was to keep the same plan at a cost of $928.49 per month for our family plan with a $25 office visit, $100 emergency, $75 for MRI/CAT/PET scans, $1,000 hospitalization, $250 day surgery and 15/30/50 for prescriptions. The other option was to switch to a $3,000 family deductible plan, before any co-payments for office visits and prescriptions would apply, while hospitalizations and day surgeries would be covered 100 percent after we paid the $3,000 family deductible. We chose the later HSA insurance plan with a monthly premium of $854.78 per month.

Although we saved $73.71 per month in premiums and had no planned medical procedures, it was not the reason we went with this plan. We picked a $3,000 family deductible plan to open an HSA, which then allows us to contribute up to $5,800 tax deductible and tax-deferred (individuals can contribute up to $2,900). In the event we do incur any medical expenses through the deductible, we can withdraw money from the Health Savings Account without any tax consequences.

On the other hand if we do not incur any unreimbursed medical expenses, we do not lose the money in our HSA. Money that remains in the HSA is allowed to accumulate tax-deferred and can be withdrawn at any time, but would be taxable just like an IRA, including a 10 percent penalty before age 59.5. In addition, an HSA-eligible participant has until April 15, 2009 to make their contribution.

After eight months, we have:

1. Saved $589.68 in premiums
2. Incurred no claims towards the deductible
3. Contributed $5,800 tax deductible into our HSA

Health Savings Accounts are not for everyone, but it's an option that should not be overlooked. The HSA can be a great way to supplement other retirement plans that may be maxed out, or retirement plans that limit your contributions by those of the rank-and-file.

Lastly keep in mind that most health carriers will allow a company to offer multiple plans. One plan could be a conventional plan, not HSA-eligible. The other could be a high-deductible plan that is HSA eligible.

If you're at all interested at saving money on your health insurance, I recommend you learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 08:05 AM | Comments (0)

January 29, 2009

Older Individuals are Finding Health Savings Accounts Useful

Health Savings Accounts are an amazing tool that a lot of people have been talking about. They is meant to help you save money on insurance and make your life simpler, maybe even help you be healthier.

But do Health Savings Accounts work just as well for older Americans? The answer depends on your age.

Let’s start with someone older than 65. Once you turn 65, you are eligible for Medicare, and that means you can no longer contribute to a Health Savings Account (HSA). If you had an HSA before you turned 65, a very interesting thing happens.

The HSA, which was basically an account that could only be used for medical expenses, suddenly becomes an Individual Retirement Account (IRA). It instantly changes status when you turn 65.

This is a very intriguing concept for all of us who are younger than 65. You already know that there is no “use it or lose it” condition for an HSA. You keep accumulating that money forever, you do not lose it at the end of each year.

So, if you’re not sick very often, you may accumulate a lot of money in your HSA. Then, once you turn 65, you can start pulling money out of it each year as income. Your withdrawals are taxable, but won’t it be nice to have another stream of income when you retire. Think of it as your “Healthy Life Reward Account.” The healthier you are in your life, the more money you’ll have left in your HSA. It could be tens of thousands of dollars!

If you are over 55 but younger than 65, you get even more benefits from Health Savings Accounts. You are eligible for something called “catch up contributions.” This means that you can put more money into your HSA than those of us under 55.

The catch-up contribution is $1,000 in 2009 and forward. If I were you, I’d take good advantage of this catch-up contribution. Tax-deferrals are always nice to have when tax time comes around.

You can read our Consumer's Guide to Health Savings Accounts for extensive information on the best ways to use your HSA.

Posted by Wiley Long at 11:11 AM | Comments (0)

January 26, 2009

Health Savings Accounts Are Creating Better Healthcare and Safer Investing

The security of Health Savings Accounts is more attractive than ever, but there’s a unique bonus inherent in the structure of Health Savings Accounts – the ability to invest your Health Savings Account funds in a safe haven, and build a bigger healthcare nest-egg for the future.

That is a main reason we believe agencies will be far more successful recommending Health Savings Accounts to their clients than they were last year, as long as they understand the appeal and advantages of the investment side of the equation.

Health Savings Accounts came about as part of the Medicare Reform Act of 2003, and they offer consumers a tax-free option for healthcare. With Health Savings Accounts, consumers typically employ a high-deductible health insurance policy to protect against major medical expenses, while establishing a savings account to use for small, day to day medical expenses. What makes it affordable is that the high deductible policy is significantly less expensive than traditional HMOs, and the money they deposit into their Health Savings Account (HSA) is PRE-TAX dollars.

The law allows people to take money out of their paycheck and deposit it directly into their HSA before they pay taxes on it. So, not only do they save on their insurance premiums, but they are also able to save on their taxes. Moreover, HSA money can be used to pay for ANY medical expense, from over-the-counter headache medications, knee braces or orthopedic shoes. Anything remotely medical can be paid for out of that account, all funded with pre-tax dollars. Finally, at the end of the year, any money left over in the HSA account can be rolled over – tax-deferred – to use the next year. Flex spending accounts don’t allow that – if you don’t use it during the calendar year, you lose it.

HSA plans were created in response to the rising cost of health care with the intent to give the consumer back the control of their health care costs and in many cases reduce premiums by up to 50 percent.

These unique plans provide consumers greater control, more choices, tax advantages and are generally more affordable than their HMO and PPO second cousins. Plus, the interest in investing their HSA funds is growing.

According to a survey done by Cigna last year, more than 65 percent of HSA customers said they would be interested in putting their excess HSA funds into mutual funds and other types of investment vehicles that are traditionally safe havens for their money. When you consider that HSA funds come from pre-tax contributions, it’s like double-dipping. Not only do they save on their taxes, but they are also able to grow that amount through the investment options now available for them.

Based on the current economic conditions on Wall Street, nothing in the marketplace can match the benefits of Health Savings Accounts. People are afraid to put their money in stocks anymore and they are looking for vehicles with tax shelters with attractive tax benefits. With Health Savings Accounts, customers can solve both problems: where to safely put your money and how to provide incredible health coverage for your family. Health Savings Accounts are a good alternative to kill two birds with one stone, provide affordable health care and tax benefits in an uncertain and shaky economy.

Posted by Wiley Long at 12:08 PM | Comments (0)

January 23, 2009

California Sees Health Savings Account Growth

The deepening recession is doing something for Health Savings Accounts (HSAs)and other high-deductible health plans in California that a decade of hype could not: It’s making employers sign up.

Kaiser Permanente, for instance, expects to reach 1 million members in its deductible plan offerings by mid-year, according to Dr. Artie Southam, Kaiser’s executive vice president of health plan operations. That would represent 12 percent of total enrollment for an organization that for decades had been wedded to the traditional HMO model.

In Northern California, the Health Savings Account growth spurt will likely translate into between 400,000 and half a million high deductible health plan enrollees, Southam told the San Francisco Business Times, or roughly 40 percent of Kaiser’s national deductible plan total.

Between 15 percent and 20 percent of Kaiser’s deductible plan enrollees are enrolled in HSA-qualified, high-deductible plans, he said.

Posted by Wiley Long at 12:38 PM | Comments (1)

January 15, 2009

New Online Tool Helps Health Savings Account Owners Price Shop

While most Americans can't control the economy, they can do a much better job of educating themselves about what they should pay for healthcare. Healthcarebluebook.com is the first national effort to provide free pricing data to Health Savings Account owners. It is designed to give people the information they need to pay fair prices for their healthcare.

Price variations for healthcare services, even within the same market and provider network, may be thousands of dollars. So knowing what the fair price is can help Health Savings Account owners better manage the cost of their healthcare.

Healthcarebluebook.com is easy to use. Type in the kind of healthcare service you need plus a zip code and the Healthcare Blue Book pulls up the fair price based on fees paid by Preferred Provider Organizations (PPO) to doctors for services in that market. Health Savings Account owners can then use the suggested Healthcare Blue Book price to discuss prices for services and treatments with their doctors and other healthcare providers.

Healthcarebluebook.com also offers a customized application to employers that supports implementation of Consumer Directed Health Plans (CDHP), High Deductible Health Plans (HDHP), and Health Savings Accounts (HSA) among other consumer benefits designs. Applications are built depending upon the types of healthcare services employees use, and what in and out of network PPO and other healthcare providers charge for these services.

Healthcare costs are expected to continue climbing throughout 2009. The National Survey of Employer-Sponsored Health Plans conducted by Mercer, reported that in 2008, PPO deductibles doubled at many companies from $500 to $1,000.

Americans do price/value comparisons for their homes, cars, vacations and the majority of goods and services they buy. "Why not healthcare?" asks Dr. Jeff Rice, Healthcarebluebook.com founder. The former CEO of CareSteps, Rice has a long history in the healthcare industry of developing innovative products for consumers.

"Patients should not assume that a high price means good quality," says Rice. "It is up to patients to ask about the cost of services and to learn about the quality of their providers. Doctors and hospitals that charge a fair price, often provide the best value. Healthcarebluebook.com can help consumers figure out what they should pay."

Health Savings Account owners need better education about the healthcare services they purchase and 2009 is a good year for them to start. Using Healthcarebluebook.com can help people learn how to obtain fair prices for their healthcare.

Posted by Wiley Long at 10:47 AM | Comments (0)

December 23, 2008

Increasing Number of California Employers Offering Health Savings Accounts

The dominance of managed care in the California market led many benefits experts to doubt if Health Savings Accounts would gain much traction there.

But a recent survey by the California HealthCare Foundation has found that 38% of employers in California now offer Health Savings Account plans to their employees, up from 18% in 2007.

However, only 10% of employers offering High Deductible Health Plans to their employees also offer a Health Savings Account (HSA), while less than 1% offer a Health Reimbursement Arrangement (HRA), according to the latest edition of the California Employer Health Benefits Survey, a joint project of the Oakland, Calif.-based California Healthcare Foundation and the National Opinion Research Center.

And even through the percentage of employers offering High Deductible Health Plans in California surged, the number of employees enrolling in the plans remained unchanged from 2007 at 4%. By contrast, enrollment nationally in HSA plans doubled from last year to this year to 8%.

More than three-quarters of California workers were given a health maintenance organization option in 2008, according to the survey, compared with just 41% of workers nationally. As such, California workers have been consistently more likely to enroll in HMOs than covered workers nationally, who are more likely to enroll in preferred provider organization plans, the survey noted.

In California, 52% of covered workers were enrolled in HMOs in 2008, while 33% were enrolled in PPOs, 11% in point-of-service plans and 4% in HSAs. By comparison, 20% of U.S. workers are enrolled in HMOs, while 58% are enrolled in PPOs, 12% in POS plans and 8% in HSAs.

Among other findings of the survey:

* Employer-based health care premiums rose by an average of 8.3% in 2008, the same as 2007.

* More than half of California employers offered coverage for same-sex domestic partners, more than double the national average. Due to a change in survey wording, the 2008 results could not be compared to prior years.

* Thirty percent of covered workers in California were enrolled in a partly or completely self-insured plan in 2008, compared with 55% nationally. The gap between the state and national figures is associated with California’s high HMO enrollment since HMOs are less likely than other plans to be self-insured, the survey noted.

This year's survey, which was conducted by interview from April to July, included 796 randomly selected participants drawn from the Dun & Bradstreet list of private employers with three or more workers.

For complete results of the survey, visit: www.chcf.org

Posted by Wiley Long at 10:50 AM | Comments (0)

December 14, 2008

Doctors Still Need To Learn About Health Savings Accounts

A new survey has found that few doctors are adequately prepared to help patients navigate newer, so-called "consumer-directed" health plans.

The plans, which are meant to shift more responsibility for health care decisions to the individual patient, often come with high deductibles and include a Health Savings Account.

But 43 percent of doctors said they have heard little, if anything, about Health Savings Accounts, and less than half (48 percent) feel ready to discuss medical budgeting with their patients.

"I think as Health Savings Accounts roll out, it's really important to educate doctors about them and about some of the differences between HSA plans and more traditional models of insurance," said study co-author Dr. Craig Pollack, a Robert Wood Johnson Foundation clinical scholar at the University of Pennsylvania in Philadelphia.

The study highlights doctors' nebulous role in counseling patients on financial matters.

"I don't think it's at all clear in insurers' minds what role they want doctors to play, and I don't think physicians themselves are clear on what they're comfortable with," said Dr. Hoangmai H. Pham, a senior health researcher at the Center for Studying Health System Change in Washington, D.C..

Nor do patients know what role they want their doctors to play, she added. "It's frankly very uncomfortable for both patients and physicians to talk about money in any clinical context."

Peter V. Lee, executive director for national health policy at the Pacific Business Group on Health and co-chair of the Consumer-Purchaser Disclosure Project, said the study raises issues that go well beyond consumer-directed health plans.

"Patients under virtually every plan are seeing huge financial implications of their choices," he said, "and historically doctors have felt they didn't need to talk money."

An estimated 5.5 million Americans are enrolled in HSA plans, according to the 2008 Employer Benefits Survey, an annual report released last month by the Kaiser Family Foundation and the Health Research & Educational Trust.

Health Savings Account Plans have grown in recent years as employers have sought ways to shift more responsibility for medical decision-making to employees and their families. The theory is that enrollees will forgo unnecessary services and shop for needed care based on price and quality.

But Health Savings Accounts are not like the managed care arrangements that have dominated the insurance landscape in recent years.

With the exception of some preventive-care services, coverage typically begins after the member satisfies a high deductible -- upwards of $1,500 -- on average, for an individual, according to the Kaiser survey. The high-deductible health insurance plan is paired with either a Health Savings Account or a Health Reimbursement Arrangement, and funds in these accounts can be used to pay for routine medical expenses.

To assess physicians' readiness to engage patients on cost and quality issues in these plans, Pollack and colleagues conducted a random, national survey of 1,500 primary-care physicians and received 528 responses.

About one-third of the doctors surveyed had little knowledge about how money is contributed (35 percent) and spent (31 percent) from the plans' medical savings accounts.

Being exposed to HSA insurance did not always mean that doctors were in the know.

"We were surprised that about a quarter of physicians who currently knew that they cared for patients in consumer-directed health plans said they really didn't have a lot of knowledge about the cost-sharing involved in these plans," Pollack said.

While most felt ready to discuss the cost of office visits, medications and laboratory tests, half or fewer were prepared to advise patients about the cost of radiologic studies, specialist consultations and hospitalizations.

People enrolled in Health Savings Accounts are encouraged to take advantage of online tools to compare costs and evaluate quality when making medical decisions. But, according to the survey, physicians are deeply skeptical about the information provided by government and insurance Web sites.

With more knowledge and education, Health Savings Accounts will continue to help individuals, families, and even doctors deal with our current health insurance situation.

Posted by Wiley Long at 04:46 PM | Comments (0)

December 05, 2008

BBB Advice on Health Savings Accounts

Rising healthcare costs are forcing small business owners to decide whether or not they can afford to provide health coverage for their employees. Some employers are choosing to contribute to Health Savings Accounts (HSA) for employees as an alternative to paying for health insurance, and Better Business Bureau is providing guidance for small business owners on whether Health Savings Accounts could be a viable option for their company.

According to a recently released Kaiser Family Foundation study, in 2008 employer-sponsored health insurance for a family cost an average of $12,680 - a five percent increase from 2007 - with one-fourth of that cost paid by employers...

While the cost of healthcare is high now, there’s more bad news for business owners in the future. Unfortunately, it appears that employer healthcare costs are only going to increase, according to a Hewitt Associates study that estimates costs are expected to rise 6.4 percent in 2009.

“Employers have found that providing health insurance is an effective way to attract and retain a quality workforce, however, the rising cost of healthcare is making it harder for businesses to provide that incentive,” said Steve Cox, BBB spokesperson. “Health savings accounts are an alternative for cash-strapped businesses to trim healthcare costs while still providing healthcare incentives for employees.”

According to a 2008 report from the United States Government Accountability Office, the number of individuals covered by HSA-eligible plans increased significantly between September 2004 and January 2007—from about 438,000 to approximately 4.5 million.

Following are some guidelines and background information from BBB on Health Savings Accounts:

The Basics
Health Savings Accounts were established as part of the Medicare Prescription Drug Improvement and Modernization Act of 2003. Health Savings Accounts are designed as an account into which both employers and employees can make tax-free contributions. The accumulated money is the property of the employee and is used to pay for medical expenses.

Eligibility
In order for employees to maintain a Health Savings Account they must also be part of a high-deductible healthcare plan and cannot be covered by other health insurance (dental, vision or disability is permissible, however).

Tax Incentives
Employee contributions to an HSA are above-the-line tax deductions. As well, earnings such as interest and dividends are tax-exempt. Withdrawals from the accounts are tax-free as long as the money is used for medical expenses.

Contributions
The maximum contribution for an HSA is $2,900 for single coverage and $5,800 for families. Business owners can contribute to their employees’ HSA at any point and in any amount, however they must make comparable contributions to all participating employees. Contributions do not have to be the same for part-time versus full-time employees.

Administrative Costs
Another benefit for small business owners is that there are minimal administrative costs associated with Health Savings Accounts since the accounts are self-administered by the employee.

Posted by Wiley Long at 08:18 AM | Comments (0)

November 26, 2008

Health Savings Accounts Approach $4 Billion Mark

Since the products became available in 2004, consumers have opened 2.9 million Health Savings Accounts (HSA) and have collectively banked more than $3.9 billion, according to Inside Consumer-Direct Care's (ICDC) semiannual report on Health Savings Accounts. The average account balance, however, remained virtually unchanged at $1,348 - up just $7 since January. A year ago, financial firms said they collectively held more than $2.33 billion in 1.76 million accounts. By Jan. 1, 2008, assets had grown to $3.2 billion in 2.2 million accounts. The report is based on data from more than 40 financial firms that regularly provide ICDC with account figures.

Also included in the estimate are data gathered from another 40 firms for AIS's' 2007 HSA Directory and Resource Guide. A similar report on credit unions will be included in an upcoming issue of ICDC.

Several financial firms reported dramatic growth in volume and assets over the past year. First Horizon Msaver, Inc., based in Overland Park, Kan., says it has opened 95,000 Health Savings Accounts and holds $90 million in assets. That's up from 50,000 accounts and $76 million in assets as of Jan. 1, and from 35,000 accounts and $50 million in assets a year ago.

Msaver spokesperson Marty Trussell says health plans are increasing their use of continuing-education sessions and other training opportunities for agents and brokers to promote the adoption of HSA-qualified plans.

OptumHealth, a subsidiary of UnitedHealth Group, is the largest HSA firm in terms of assets with $633 million in nearly 400,000 accounts. ACS/Mellon HSA Solution is the largest in terms of account volume with 530,000 and $436 million in assets. Wisconsin-based HSA Bank was the second largest firm in terms of assets with $580 million in 220,000 accounts.

ACS/Mellon spokesperson Tom Hrick expects to see more consolidation among HSA administrators. While many banks are going after the growing HSA business, profit margins for the accounts "are too thin to support firms that don't already have a base of accounts."

The rocky economy, combined with increasing health coverage costs, will add to the appeal of HSA-qualified plans, says Sterling HSA CEO Cora Tellez. Bill West, president of First HSA, Inc., agrees and says he expects steady growth in the year ahead. "Four-dollar-a-gallon gas and higher insurance premiums are making many people look at HSA-qualified plans, he says. However, many are still afraid to make the leap unless there is a financial incentive or and they have no other choice," he asserts. West adds that more midsized employers are shifting to full-replacement HSA plans. John Sweeney, spokesperson for Draper, Utah-based HealthEquity, Inc. predicts account volume will "at least double" over the next year.

Larry Deegan, vice president of business development at Illinois-based American Chartered Bank, says he would be "disappointed if we did not have 35,000 to 40,000 accounts by the end of 2009." The bank, he adds, does not have any health plan partnerships. As of Sept. 1, the bank had 23,000 accounts and held nearly $40 million in assets.

Deegan says one of the most popular plan designs he's seeing these days includes an annual deductible of $2,500 for single coverage and $5,000 for family and provides 100% in-network coverage once the deductible is met. Premiums for those plans are between 25% and 40% lower than are premiums for more traditional PPOs. "That allows employers to provide funding for the accounts," he says.

Employers, especially those in the small-group market, need to do a better job of explaining the financial benefits of Health Savings Accounts to their employees. Even in instances where an HSA-based plan is the best deal, employees tend to remain with the more expensive PPO plan, Deegan complains.

Posted by Wiley Long at 10:26 AM | Comments (0)

November 14, 2008

Health Savings Accounts Create Choice

At the National Consumer Driven Healthcare Conference I went to, one of the speakers was Samuel Gibbs, Senior Vice President of ehealth insurance. He spoke about online health insurance shopping. They’ve found that one of the main criteria consumers want to know is "is my doctor in the network?" Another sign that consumer's want choice with their Health Savings Account, particularly when it comes to who their doctor is.

They also want fast. He said that when they got some carriers to offer instant approval, sales increased 30%. They are highly focused on making the sale without talking to the consumer, and in fact get 80% of their business without any direct communication. (While HSA for America does of course offer online applications, we also have Personal Advisors that will give direction on which plan will be the best value, and also walk the customer through the application process.)

Posted by Wiley Long at 10:42 AM | Comments (0)

November 11, 2008

Health savings accounts can help you save now and later

The concept behind Health Savings Accounts is pretty simple: You put money into a tax-favored account to pay for medical expenses now and in the future.

For most people, the hard part is understanding the high-deductible health plans they must choose to qualify for a Health Savings Account. These plans require participants to pay more of the cost of care before insurance picks up its share.

Preventive care and diagnostic tests, however, often are covered in full.

"We don't want them to scrimp on those," said Mike Debo, a sales executive with Anthem Blue Cross and Blue Shield in St. Louis. "We don't want them to be tempted not to have those tests done."

High-deductible health plans are becoming more common as employers search for ways to cut health care costs. The thinking is that consumers will be more selective about the use of health care if they're paying a bigger share of the costs, said Katie Davis, senior marketing specialist at Enterprise Bank & Trust Co.

"We have to get people to understand that the costs of health care are expensive," said Randy Ressel, vice president of sales for Anthem Blue Cross. "Co-pays mask the cost of care."

High-deductible plans cost less than conventional insurance, so many employers agree to put money into health savings accounts that can be used to offset the deductible. Employees also can contribute to the accounts. The money can be used for a broad range of medical expenses, from meeting deductibles to paying for medicines and medical equipment.

Next year, a plan must have at least a $1,150 deductible for an individual and $2,300 for a family to qualify as a high-deducti­ble plan. (That's up from $1,100 for an individual and $2,200 for a family this year.) The maximum out-of-pocket cost for such plans next year will be $5,800 for an individual and $11,600 for a family.

Instead of co-pays of $10 to $40 for doctor visits, consumers pay for services until they reach the deductible and then pay a percentage of the cost up to the out-of-pocket maximum. Rates for doctor visits and other services are negotiated by an insurance company, but consumers are encouraged to shop around for the best deal.

Next year individuals can put up to $3,000 a year in a Health Savings Account, and families can add up to $5,950. If you're 55 or older, you can put in another $1,000.

The accounts have triple tax benefits. The money comes out of your paycheck before taxes, and it grows tax-free in the account. When you use the money to pay for medical expenses, there's no tax on that, either.

Jay Savan, a principal with Towers Perrin in Clayton, said the plans can be a good deal regardless of your health or age if you understand them and plan for expenses accordingly.

Buying insurance is all about balancing fixed and variable risks, he said. The fixed risk is the premium. The variable risk is the amount you'll spend in a year on health care for deductibles, co-payments and other costs.

High deductible plans cost less, reducing the fixed risk. Consumers can prepare for the variable risk with the health savings account. If actual costs are less than the amount you saved, you have money left for future care.

Savan said he recently priced a traditional preferred provider plan with a $500 deductible and $2,500 out-of-pocket maximum against a high-deductible plan with a $2,500 deductible.

The traditional plan cost $1,600 more in premium, in addition to the $2,500 deductible. In addition, the buyer of a traditional plan would have pharmacy and physician co-payments, which don't count against the out-of-pocket limits.

With the high-deductible plan, the $1,600 savings could go into a health savings account. The account's tax benefit of $448 (for someone in the 28 percent tax bracket) translates into $2,048 in purchasing power, Savan said.

Consumers need to estimate their total health care costs for a year under both types of plans. They need to make sure they're comparing the same kinds of care and health care providers as well. For some, the health savings account makes sense. For others, a traditional plan may work better.

Unlike flexible spending accounts, health savings accounts aren't a use-it-or-lose-it proposition. You don't have to use the money the same year you put it into the account.

The money can be invested in a variety of vehicles, from interest-bearing accounts to mutual funds. Health Savings Accounts also are portable, which means you can take the money with you if you change jobs or retire.

In retirement, money from a health savings account can be used to pay premiums for Medicare Part A or B or for long-term care insurance. You can take money out for purposes other than health care, but then you pay tax on the withdrawal.

Mark Baker, a health savings account specialist with Golden Rule Insurance Co., said the plans are especially appealing to self-employed individuals because they can reduce premiums significantly and sock the savings away in an HSA.

"We're also seeing a lot of families who are working for employers who can't afford to buy them coverage," Baker said. Some employers offer to give employees a fixed amount to buy coverage.

"They want an affordable plan that will cover them for something truly serious," Baker said. "They can put money away and save it and use it for normal health care for their families."

Posted by Wiley Long at 10:56 AM | Comments (0)

November 03, 2008

Consumers Demanding Health Savings Accounts

Consumers are demanding a much greater role in decisions involving their health care, says Grace-Marie Turner, president of the Galen Institute.

For the past six years, the U.S. health care sector has been moving toward more market-based solutions with Health Savings Accounts, introducing patient choice and competition into a system that has largely been dominated by top-down, centralized management, says Turner. For example:

* Consumers have new incentives to become partners in managing their health costs through financing options such as Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs).

* Individuals and companies are saving money on health costs as a result.

* Choice and competition have been introduced in public programs such as Medicare and Medicaid, showing people can choose among competing health plans that have new incentives to offer better benefits at a lower cost.

The bottom line, says Turner, is that a market-based solution to the health care crisis is a win/win/win:

* It is a win for the uninsured because millions more Americans would have the chance to buy health insurance.

* It is a win for the states because they would have more flexibility to direct federal resources to meet the needs of citizens to get affordable health insurance.

* It is a win for employees because they would have the opportunity to buy health insurance they can own and can take it with them from job to job, giving them more control over decisions involving their health insurance and health care.

Posted by Wiley Long at 12:08 PM | Comments (0)

October 29, 2008

Lower Your Health Insurance Costs with a Health Savings Account

With inflation exceeding 5%, are you searching for ways to cut expenses and save for retirement? While often overlooked, a Health Savings Account can significantly lower your health insurance costs and provide a tax-free way to save money for retirement.

For you health insurance needs, you should consider the combination of a High Deductible Health Plan with a Health Savings Account. These health insurance plans are often undersold by insurance agents due to the lower commissions they receive. However, when compared to a traditional health insurance plan, the combination will virtually always reduce your health care costs.

Health Savings Accounts are often characterized as only being advantageous for the healthy and the wealthy. This assertion is wrong! As long as you contribute the maximum annual amount to your HSA, you High Deductible Health Insurance plan will virtually always save you money on your health care costs, regardless of your health care expenses.

Health Savings Accounts provide three financial advantages over traditional health insurance policies:

1) If a traditional health care plan, with a $1,500 family deductible, costs $400 per month, an HDHP, with a $4,000 family deductible, will typically cost around 25% less or $300 per month. In this example, the HDHP provides a $1200 per year savings on insurance premiums.

2) When you contribute the family maximum to your HSA, a $5,800 tax deduction is applied to both federal and most state income taxes. If family taxable income exceeds $65,100, all incremental income is taxed at 25% for federal income taxes and 4.63% for Colorado state income taxes. The $5,800 maximum HSA deduction provides a combined federal and state income tax savings of $1,718.50.

3) Medical expenses paid from your HSA are made with tax-free dollars. With a traditional health plan, all expenses are paid in after tax dollars. Thus, paying the traditional plan’s $1,500 family deductible will require before tax earnings of $2,132.

Let’s assume that your health care costs exceed $4,000 in 2008. On an after tax basis, the traditional health insurance plan’s deductible will save you $1,868 over the $4,000 HSA deductible. However, HDHP premiums are $1,200 less and the HSA deposit saves you $1,718.50 in federal and state income taxes. Combining both the premium and income tax savings, the HDHP/HSA plan costs $1050.50 less than a traditional health insurance plan, at the maximum HDHP deductible amount of $4,000. HDHP plans also have no co-pays and often pay 100% of all medical expenses after the deductible is met.

If your family is healthy and you only require $1,000 in medical expenses for the year, the annual after tax savings with the HDHP is $3,340. This represents the sum of the HDHP insurance premium savings, the HSA income tax savings and $421 saved by paying the $1,000 in medical expenses with HSA funds that are never taxed.

An HSA is the only savings device that combines the income tax savings of an IRA with the tax free withdrawal of a Roth IRA. Like an IRA, funds deposited into an HSA are completely deductible from your income taxes, even if you don’t itemize. Like a Roth IRA, HSA funds can be withdrawn tax free at any time, to pay for medical expenses.

If your finances will allow, use current income to pay medical expenses and save your HSA funds until retirement. The Employee Benefit Research Institute estimates that a 65 year old will require $164,000 in medical expenses if they live 20 years after retirement. With HSA funds growing tax free, you could potentially have “free” medical care throughout your retirement years.

As long as you fully fund your HSA account and are in at least the 25% federal income tax bracket, you will virtually always come out ahead with the HDHP/HSA. When it comes time to renew your health insurance coverage, consider the HDHP/HSA approach. It will save you money and it can provide an excellent savings vehicle for your retirement years.

Learn more about what a Health Savings Account can do for you at HSA for America

Posted by Wiley Long at 09:50 AM | Comments (0)

October 23, 2008

Health Savings Accounts at the NCDH Summit

I’m in Washington D.C., at the National Consumer Driven Healthcare Summit where Health Savings Accounts are being discussed as a way to save consumers money. There are so many ways consumers can save money if they simply take a more proactive role in managing their own health care. Robert Neese, of HealthScripts, reported that under utilization of generic prescription drugs costs consumers over $42 billion a year. Greater use of mail order prescriptions will also save money, and leads to better therapy adherence to boot!

Learn more about Health Savings Accounts and how you can save money on your health care at http://www.health--savings--accounts.com

Posted by Wiley Long at 03:40 PM | Comments (0)

October 20, 2008

Using Your Health Savings Account to Become CEO of Your Own Healthcare

At the National Consumer Driven Healthcare Summit, Elizabeth Bewley gave a fascinating talk titled "Consumers Need to Become CEOs of Their Own Health and Health Care." Health Savings Accounts can help you do just that.

During her talk, Ms. Bewley explained how our modern health care system is set up to benefit interests other than you. For instance, she spoke of a condition called ICU Psychosis, that affects many patients after spending time in intensive care. This problem manifests as a form of delirium or psychotic episodes, and is caused by the typical conditions in ICU - bright lights, noise, sleep deprivation, confusion about night and day, etc.

The first step in being your own healthcare CEO is to take care of your health. Simply staying out of the hospital could save your life. The Institute of Medicine reports that medical errors cause about 100,000 deaths annually, making this the third leading cause of death. Hospital-contracted infections kill another 100,000 a year. Adverse drug events kill an additional 125,000. Thus, approximately 17% of total deaths in the U.S. may be attributable to medical care.

Up to one half of prescribed drugs do not work for patients as intended, and physicians rarely explain possible adverse side effects or how long the patient should take the drug. Bottom line, the system is not individual-centric, but rather built for the needs of the providers. To take more control, consumers need to ask more questions; create a personal health record; and realize that they, not the doctor, are in charge of their own health.

If you don't have already have a Health Savings Account, I urge you to sign up for an HSA-qualified health insurance plan an open an HSA today. You can then become CEO of your own health care with the help of your Health Savings Account.

Posted by Wiley Long at 03:30 PM | Comments (0)

October 14, 2008

CDC Report on Health Savings Account Plans

The Centers for Disease Control reports that 20.3 percent of all people under age 65 now have a high-deductible health plan (HDHP)--more than the number covered by public programs (19.4 percent). The HDHP is defined as having a deductible of at least $1,100 for an individual or $2,200 for a family. You can view the report here: http://www.cdc.gov/nchs/data/nhis/earlyrelease/insur200809.htm

What this means is that people are becoming more and more aware of Health Savings Accounts.

In fact, many experts are predicting a surge in Health Savings Account enrollments among federal employees in the next year, which will further accerate the consumer-driven healthcare movement.

Next week I will be attending the National Consumer Driven Healthcare Summit in Washington DC, and I’m sure I’ll have plenty to report. What is clear is that there has been no better time, ever, to switch to an HSA-qualified health insurance plan. Consumer’s don’t have extra money to blow on an expensive copay plan, and they could use all the tax breaks they can get.

Learn more about Health Savings Accounts at http://www.health--savings--accounts.com

Posted by Wiley Long at 10:26 AM | Comments (0)

October 06, 2008

Health Savings Account Enrollments Continue To Rise

With insurance coverage and account custodian openings increasing, three new Health Savings Account trends are beginning to surfaced in the latest round of research conducted by Information Strategies, Inc. (ISI).

At the same time, account custodian numbers continue to grow with an average 18% increase on a quarter-to-quarter basis for the period ending June 30.

While the total number HSA accounts are growing, expected to double in 2008, there is a definite seasonality to purchases.

Third quarter expansion will be less than in the first two quarters of 2008 but greater efforts focused on adding sign-ups is expected in the final three months with a significant increase in total insurance and account custodian usage predicted for January 2009.

Among the other findings of the latest 2,000+ interviews with HSA purchasers are:

Individuals continue to be significant purchasers of HSA insurance.

Larger companies are joining with smaller entities in offering Health Savings Accounts to their employees.

Contributions to Health Savings Accounts are rising but the impact of layoffs is depleting some reserve funds.

One trend surfaced in this latest flight of interviews was that younger employees are embracing Health Savings Accounts as a retirement/emergency funding program. To date, ISI has interviewed more than 34,000 HSA users over the past four years.

Of the 312 respondents who had lost their jobs in the first half of 2008, 56% said they had used HSA account monies to pay some or all of their COBRA charges.

Fully 11% of individuals interviewed said they had been given funds in lieu of a company sponsored healthcare benefits program.

ISI also has identified significant changes in agent/broker attitudes towards these consumer directed offerings. The percentage of agents reporting that they include Health Savings Accounts in their first proposals to company management has risen past the 30% mark.

One interesting new statistic that is encouraging for insurance providers is the fact that that the number of respondents who said Health Savings Accounts were their first choice rose above 50%. This is the first time this preference has been reported by a majority of respondents.

A significant majority of respondents (61%) also said that they were not cutting down on their contributions due to the spike in fuel costs. Many (27%) did say they might delay depositing the monies for a quarter to see how the impact of high costs is affecting their total financial position.

Posted by Wiley Long at 10:14 AM | Comments (0)

September 23, 2008

High Deductible Health Plan Consumers Report Satisfaction

A recent survey release by HSA Bank has shown that high deductible health plan respondents are more likely to be engaged consumers who ask about costs prior to making an appointment, seek information about generic prescription alternatives and select lower cost treatment alternatives. The results were compiled from HSA Bank's Consumer Benchmark Survey, which provides current data regarding consumer characteristics and expectations, as well as consumer healthcare purchasing behaviors.

More than 730 respondents answered the 30-question survey. Nearly two-thirds of the respondents had a high deductible health plan. Of those respondents, 87.8 percent also reported having a Health Savings Account.

Additional highlights from the survey include:

-- When rating their overall health, no statistically significant difference exists between the respondents with a high deductible health plan and those in a traditional health plan.

-- Respondents with a high deductible health plan were no more or less likely to decide against or delay treatment due to cost when a treatment was recommended in the past 12 months.

-- Nearly 73 percent of the respondents with a high deductible health plan chose that plan over a traditional health plan option.

"The data collected in the survey suggests that people in high deductible health plans seek healthcare at the same rate as those in traditional plans, but with the added benefit of making careful consumer choices," said Kirk Hoewisch, president of HSA Bank.

You may download HSA Bank's Consumer Benchmark Survey Report at the following web address: http://www.hsabank.com/WorkArea/showcontent.aspx?contentID=2048

Posted by Wiley Long at 10:45 AM | Comments (0)

September 01, 2008

The Push to Make Health Savings Accounts Even Better

John C. Goodman, president of the National Center for Policy Analysis, also known as "the father of Health Savings Accounts" for having helped to create the HSA, has been meeting with government and business leaders this year to support the adoption of what he calls "Universal Health Savings Accounts."

This type of consumer-driven health plan would replace all other such plans, such as Health Savings Accounts, Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA), he said.

The motivation is the same -- to give the consumer more control and replace all such consumer driven health plans with just a single account: the Universal Health Savings Account.

A number of problems have surfaced with the current forms of consumer-driven plans, says Goodman:

* The law for who can have a Health Savings Account is too restrictive; and with FSAs, there is no rollover from year to year; lastly, with HRAs, there is no portability of benefits if a person changes jobs.

* Federal laws that govern Health Savings Accounts allow individuals to squirrel away up to $2,850 and $5,650 for families, tax-free, each year.

* Those funds can be rolled over from year to year as well as carried from job to job.

* The current form of Health Savings Accounts is flawed because they must be paired with insurance plans with high deductibles of at least $1,100 or more for individuals or $2,200 for families.

"Ideally, people should be able to combine a Health Savings Account with any plan, regardless of any deductible or co-payments," Goodman said.

Goodman did not provide specific numbers about the number of people who might opt for the new form of HSA, but said that with the change, "I would imagine virtually everyone who saves at all would tend to opt for a Universal Health Savings Account," he said. "The reason: You can do everything with an HSA that you can do with an IRA or 401(k) plan, and buy tax-free health care."

Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com

Posted by Wiley Long at 03:35 PM | Comments (0)

August 10, 2008

Health Savings Account Contribution Question

I have a Health Savings Account that was opened when my employer switched to a high-deductible policy. My pre-tax deductions were deposited in the Health Savings Account from my paycheck. I have moved to another employer that does not offer a high-deductible policy. Can I still contribute to the Health Savings Account? If so, are the contributions tax-deductible? Can I still pay health-related costs from the Health Savings Account?

You can only make Health Savings Account contributions for the months that you were covered under an HSA-qualified high-deductible health insurance plan. But...

if you didn't make the maximum contributions that were allowed when you were eligible, then you may still be able to contribute the remainder of the money.

For example, if you had HSA-qualified health insurance plan from January 1 to April 31, 2008, then you were eligible to make four months' worth of contributions. The maximum contribution limit for 2008 is $2,900 for people who are not yet age 55 with individual coverage. So you could contribute $966.67 (4/12 of $2,900). If you only had $200 taken out of your paycheck every month for the Health Savings Account ($800 total), then you can still contribute $166.67 to your Health Savings Account for 2008.

Because your contributions are no longer subtracted from your pay before taxes, you'll need to deduct those extra contributions when you file your 2008 income tax return (the last day for making 2008 contributions will be April 15, 2009).

Good news on the second half of your question: You can always use money from an existing Health Savings Account tax-free to pay out-of-pocket medical expenses in any year, even if you can't make new contributions, as long as the expenses were incurred after you opened the Health Savings Account.

You can learn more about Health Savings Accounts at: http://www.health--savings--accounts.com

Posted by Wiley Long at 03:22 PM | Comments (0)

July 23, 2008

Things to Know About Health Savings Accounts

Health savings accounts have become very popular. Since their introduction in 2004, approximately 2.5 million Americans have enrolled in Health Savings Account (HSA) qualified health plans. But, alas, HSA plans are not for everyone.

Here are some pointers to help you consider whether a Health Savings Account will benefit you and your family:

An HSA plan can cut healthcare costs by an average of 40% for many people.

Nevertheless, some people will not realize any net savings. Those most likely to realize significant savings are people who pay all of their own health insurance premiums, such as the self-employed, who are relatively healthy with few medical expenses.

A health savings plan restores freedom of choice.

An HSA plan puts individual consumers back in control of their own health care. This also means that each individual must be more responsible for his or her own health care decisions. This approach of self-reliance is not always popular with or appropriate for everyone, especially those who have become comfortable with HMO-type "co-pay" plans.

Health Savings Accounts reduce income taxes.

Every dollar contributed into your HSA account is deducted from your taxable income in the same manner as contributions into a traditional IRA account, regardless of whether you spend it or just save it. Interest and investment earnings in a HSA accumulate tax-deferred, just like a traditional IRA.

Unlike an IRA, withdrawals are tax-FREE when used to pay qualifying medical expenses. In many situations, new account holders are able to almost fully fund their HSA with money saved on premiums from a prior, higher priced plan. By stashing all or most of those savings into an HSA, the account holder realizes instant, additional savings in the form of reduced taxes.

You must have a properly qualified high deductible health insurance policy in place first before you can open a Health Savings Account.

One of the biggest misconceptions about HSA plans is that any insurance policy with a high deductible will qualify the policyholder to establish an HSA account. IRS regulations, however, are quite specific. Not just any policy with a so-called "high deductible" will suffice. It is important to be certain that you are insured under a properly qualified policy. Your best bet is to work with a qualified and duly licensed health insurance broker who is experienced in marketing properly qualified HSA plans.

You must be insurable in order to qualify for the HSA-qualified health insurance policy.

Because most people do not have a properly qualified high deductible insurance policy, they will need to switch insurance plans in order to become HSA-eligible. Unless coverage is being offered under small group reform laws (generally groups with 2-49 employees), the new high deductible plan will be individually underwritten by an insurance company.

This means that some "pre-existing" conditions may not be fully covered. Alternatively, some companies may opt to cover certain "pre-existing" conditions in exchange for slightly higher premiums. Unfortunately, some health conditions simply render an individual uninsurable (examples: diabetes, chron's disease, heart attack, etc.). Underwriting requirements vary by state, which is another reason to rely on an experienced health plan broker.

Although HSA insurance premiums are low, they are not always as low as you might expect.

This happens for one main reason. Simply stated, the underlying insurance policy is just that—a health insurance policy. Although it has a "high" deductible, as required by law, the insurance company still must compensate for the risk it is assuming over the deductible amount, which it does by charging premiums.

Many companies offer policies with “one deductible” that all family members contribute toward. With those plans, it is not uncommon for premiums for a 5000 family deductible with 100% coverage after the deductible to be comparable to a 2500 "per person" deductible plan with 80/20 coverage after the deductible.

Lower premiums represent just one element of the lower net cost achieved with an HSA plan. The low net cost of an HSA plan is achieved after factoring in the benefits of lower taxes, made possible by the tax-deductible contribution to the HSA account. Thus, if obtaining the lowest possible gross premium is your main concern, you may wish to consider a high deductible, non-HSA policy, especially if you do not see the benefit to contributing to a tax-deductible savings account.

In the end, the HSA plan usually ends up being the low cost health insurance alternative after factoring in the net advantage gained from instant tax savings and long term tax-favorable growth.

An HSA offers your best chance to keep a lid on health insurance rate increases.

Make no mistake-you will have rate increases with your HSA insurance policy. Because an HSA qualified policy is still a health insurance policy at heart, there is no logical reason to presuppose that an HSA policy would be immune to rate increases required by an insurer to keep paying claims and stay in business.

But what you can expect is that the actual dollar amount of any future rate increases will be substantially lower compared to traditional health insurance plans (regular PPO and HMO plans). This is true because insurers base increases on percentages, and the same percentage of a lower base premium results in a lower dollar increase. It's not a perfect solution-but it is the most cost-efficient solution for many qualified people.

Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com

Posted by Wiley Long at 05:24 PM | Comments (0)

July 04, 2008

Celebrating Independence Day and Health Savings Accounts

People who carry a Health Savings Account insurance plan tend to value their freedom and independence. Similarly to our founding fathers, people with Health Savings Accounts find they can do better by taking personal responsibility for their fate, rather than depend on the government (or King) to take care of their every need. On this 4th of July, allow me to share with you a little history of Independence Day.

By the middle of the 1700s, the thirteen colonies that made up part of the British Empire in the New World found it difficult to be ruled by a king 3,000 miles away (King George III). They were sick and tired of the taxes imposed upon them. The colonists objected paying taxes to England while they had no say in the decisions of the British Parliament.

They voiced their grievances with England. But rather than negotiating, King George sent extra soldiers to the colonies to help control any rebellion that might take place. The following timeline explains the important events that lead to the signing of the Declaration of Independence and America’s split from England’s rule.

September 1774: The 13 colonies sent delegates to Philadelphia, Pennsylvania, to form the First Continental Congress. At this time, although they were frustrated with England, the colonies were not ready to break away from the mother land.

April 1775: British troops advanced on Concord, Massachusetts, motivating Paul Revere to ride across the land to warn about the approaching English soldiers, announcing: “The British are coming, the British are coming.” The battle of Concord became known as the “shot heard round the world” and marked the unofficial beginning of the American Revolution.

May 1776: After trying to work out their differences with England for almost a year without any success, the colonies again sent delegates to the Second Continental Congress.

June 1776: Realizing their efforts were hopeless, Congress decided to become free from British rule. So they formed a committee to create a document declaring independence from the crown – the Declaration of Independence. Thomas Jefferson headed this committee, which also included John Adams, Benjamin Franklin, Philip Livingston, and Roger Sherman.

June 28, 1776: Jefferson presented the first draft of the Declaration of Independence to Congress.

July 4, 1776: After various changes to Jefferson’s original draft, Congress voted in the afternoon on that day. And, of the 13 colonies, 9 voted in favor of the Declaration; 2 (Pennsylvania and South Carolina) voted No; Delaware was undecided; and New York abstained. John Hancock, President of the Continental Congress, was the first to sign the Declaration of Independence.

July 6, 1776: The Pennsylvania Evening Post printed the Declaration of Independence.

July 8, 1776: In Philadelphia’s Independence Square, the first public reading of the declaration took place. The colonists rejoiced when they heard it. The bell in Independence Hall (then known as the “Province Bell”) would later be renamed the “Liberty Bell” after its inscription: “Proclaim Liberty Throughout All the Land Unto All the Inhabitants Thereof.”

August 1776: While the signing of the Declaration of Independence started on July 4th, it was completed in August. Even so, the Fourth of July was accepted as the official anniversary of United States independence from England. A new nation was born.

July 4, 1777: The first Independence Day celebration took place in Philadelphia. People rang bells and lighted candles and firecrackers. Now, although the colonists started celebrating their independence from Britain in 1777, the War of Independence lasted until 1783. And while Congress made Independence Day an official holiday that year, it wasn’t until 1941 that the Fourth of July was declared a federal holiday.

As Thomas Jefferson alledgedly said, "The price of liberty is eternal vigilence". Today there are still forces trying to reduce our freedoms. One that hits home on this blog is the push for socialized medicine. As is evidenced in several countries (Canada, Britain), this type of system limits choices, increases waiting lists, and prevents people from controlling their own healthcare. That’s why so many Canadians come to the U.S. for treatment each year.

At HSA for America, we’re commited to saving you money, and protecting your individual health freedom. Happy Independence Day.

Posted by Wiley Long at 03:13 PM | Comments (0)

July 01, 2008

Statistics Report On Health Savings Account Usage

Canopy Financial has announced the release of their inaugural Health Savings Account (HSA) Market Report for Q1 2008. The report aggregates and tracks statistics related to actual HSA usage via a series of key market indicators and will be published quarterly.

As evidenced in the report, Q1 2008 realized significant quarter-over-quarter growth in average funds held in both HSA deposit and investment accounts - as high as 25% for deposit accounts - indicating that Health Savings Accounts are being used as savings account vehicles with larger average balances than the average retail checking account.

"Canopy's HSA Market Report aggregates real consumer account data nationally to describe key features of HSA usage," said Vik Kashyap, CEO of Canopy Financial. "The report is significant in that it shows that Americans are using Health Savings Accounts not only for health expenditures, but as long-term savings and investment vehicles."

Average investment account inflows were more than double average outflows for the quarter. HSA account holders age 50+ had more than double the amount invested at the end of Q1 on average compared with account holders age 25-40.

Additionally, the HSA Market Report for Q1 2008 shows an increased spend of 10% on average in family plan accounts, with a slightly increased spend on average in individual plan accounts. The report breaks out actual spend characteristics by category, including bill payments, reimbursements, debit card transactions, checks, and ATM withdrawals. It also provides key data on Customer Service Representative (CSR) touches for the quarter.

Their report can be downloaded at http://www.canopyfi.com/hsa_stat_report.pdf

Posted by Wiley Long at 09:23 AM | Comments (0)

June 23, 2008

Retailers Helping to Track Health Savings Account Expenses

CVS pharmacy, Target, and other retailers are starting to make it easier to track eligible expenses for Health Savings Accounts.

"The use of Health Savings Accounts has grown dramatically over the past two years - a 35 percent increase since last year," said Rob Price, senior vice president of marketing for CVS/pharmacy. "But many consumers don't realize that managing their funds throughout the year can be simple and, more importantly, can result in significant cost-savings, particularly for those with chronic conditions."

CVS pharmacy, Target, and other retailer registers now provide shoppers with register receipts that highlight prescription medicines, over-the-counter remedies and other HSA-qualified purchases so they can be easily identified and tracked with a special symbol indicating which items are HSA eligible.

As more and more retailers start to track HSA-qualified expenses on customers receipts, keeping track of HSA expenses will become easier and easier for Health Savings Account owners.

Visit http://www.health--savings--accounts.com to learn more about the money saving advantages of Health Savings Accounts.

Posted by Wiley Long at 02:10 PM | Comments (0)

June 10, 2008

4.5 million enrolled in Health Savings Accounts

A new census released by America’s Health Insurance Plans (AHIP) discovered that 4.5 million Americans - a 43 percent increase from last year - are covered by lower-premium, high-deductible health insurance plans offered in conjunction with Health Savings Accounts (HSAs).

The census found that 27 percent of those purchasing HSA plans in the individual market were previously uninsured and almost half of those enrolled in such plans were older than age 40.

In addition, the census reveals that HSA plans provide value-added services. Most companies offer HSA plans that cover preventive care before the deductible is met, provide disease management programs for chronic conditions, and include a wide array of Web-based tools to help consumers make more informed decisions.

This is the first AHIP census to compile information about the savings accounts in conjunction with HSA plans. Eighty-eight percent of Health Savings Accounts in place in 2006 had average annual balances of $2,500 or less, while 4 percent had average annual balances more than $5,000. As of January 2007, 65 percent of accounts had been in place for less than one year.

The full census is available at: www.ahipresearch.org

Posted by Wiley Long at 10:27 AM | Comments (0)

June 02, 2008

What Can A Health Savings Account Do For Your Family

Giving your family health insurance a checkup is a smart way to save money. That’s the news from analysts who say that in many cases, switching from a traditional family health insurance plan to a high deductible plan with a Health Savings Account will significantly cut your annual health insurance costs.

Indeed, for many families with yearly medical expenses of about $1,500, the total savings often exceed $6,000 a year, which includes tax reductions of $1,500 or more, as well as health insurance premium savings. Lets take a closer look at Health Savings Accounts:

Simply put, Health Savings Accounts are alternatives to traditional health insurance that offer tax advantages and greater control over a person’s medical expenses. With a Health Savings Account (HSA), you can pay for current health expenses (and save for future qualified medical) all on a tax-free basis. Our Web site www.HSAforAmerica.com provides detailed information on the accounts.

Our website also features an HSA calculator that lets users determine the potential future value of their HSA based on their expected contributions and expenses.

Using a Health Savings Account

You can choose to use HSA funds to pay for qualified medical expenses (for example, office visits, lab work and prescription drugs) before you have met your annual deductible. These covered expenses will still count toward your annual deductible. But HSA funds can also be used for qualified services not covered by a health plan, such as dental care, weight loss programs and eyeglasses. These expenses, however, do not count toward your annual deductible.

Opening Your Health Savings Account

To open an HSA, you must be covered by a High Deductible Health Plan (HDHP). Once you’re enrolled, you own and have complete control over the money in your HSA, meaning you decide how and where to invest it to grow your account. Find a good bank to set up your Health Savings Account on our HSA Administrator page.

Health Savings Accounts will help families save thousands of dollars on their health insurance costs.

Posted by Wiley Long at 09:16 PM | Comments (2)

May 28, 2008

Census Shows 4.5 million enrolled in Health Savings Accounts

A new census released by America's Health Insurance Plans (AHIP) discovered that 4.5 million Americans - a 43 percent increase from last year - are covered by lower-premium, high-deductible health insurance plans offered in conjunction with Health Savings Accounts.

The census found that 27 percent of those purchasing Health Savings Account plans in the individual market were previously uninsured and almost half of those enrolled in such plans were older than age 40.

In addition, the census reveals that HSA plans provide value-added services. Most companies offer HSA plans that cover preventive care before the deductible is met, provide disease management programs for chronic conditions, and include a wide array of Web-based tools to help consumers make more informed decisions.

This is the first AHIP census to compile information about Health Savings Accounts in conjunction with HSA plans. Eighty-eight percent of accounts in place in 2006 had average annual balances of $2,500 or less, while 4 percent had average annual balances more than $5,000. As of January 2007, 65 percent of accounts had been in place for less than one year.

Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com

Posted by Wiley Long at 09:28 AM | Comments (0)

May 20, 2008

Health Savings Accounts Attacked by Backroom Earmark

Congressman Pete Stark (D-CA) is next in line to be the Chairman of the House Ways and Means Committee. He's probably also public enemy number one to Health Savings Accounts. He has tucking an earmark into a tax bill which would cripple and undermine Health Savings Accounts.

First, some background: HSA funds can generally only be used for qualified medical expenses. Taking money out for non-medical reasons generally results in taxes owed on the withdrawal, plus a 10% penalty. Taxpayers assert that the withdrawal was for medical expenses (or not) on their tax return, under penalty of perjury.

Like any other deduction, liars and cheats are caught using the IRS's audit process as it has been done for many years.

But that's not good enough for Stark. He wants to have HSA holders get independent verification that the withdrawals were qualified. Not coincidentally, there is only one company (Evolution Benefits) that has the technology to do this, and it's the one lobbying for this provision.

This provision is a win for both Evolution Benefits (who gets to corner the market on third-party substantiation, for which they have a patent), and Pete Stark (since he knows this will scare off banks, businesses, and consumers from offering Health Savings Accounts). And since it will drive up costs on Health Savings Accounts, this is a mortal threat to taxpayers who use Health Savings Accounts.

Posted by Wiley Long at 10:13 AM | Comments (0)

May 16, 2008

Use of Health Savings Accounts Continue to Grow

In a market where health insurance costs continue to rise for employers, more companies are turning to high-deductible health plans – and the accompanying Health Savings Accounts – to help defray costs.

An estimated 7 million people are covered by 2.2 million Health Savings Accounts as of the beginning of 2008, according to a survey by industry publishing company Atlantic Information Services Inc. Those HSA accounts hold $3.2 billion, up 60 percent from $2 billion at the beginning of 2007.

Several banks that offer Health Savings Accounts say the accounts’ popularity is growing – especially among small businesses that want to reduce their costs while still offering insurance benefits to employees.

The advantages

Kansas City-based UMB Bank, which has four branches in Springfield, passed the $100 million mark for Health Savings Accounts systemwide in January, marking a 52 percent increase in account balances compared to the previous 12 months.

Dennis Triplett, president of UMB Financial Corp. Healthcare Services, said health insurance premium costs have been outpacing inflation – average premium percentage increases have hit double digits each of the last five years, while inflation has averaged only 2.8 percent – making companies eager to reduce insurance expenses.

“One thing (employers) can look at is increasing co-pays and deductibles, and having employees pay greater shares of the premium,” said Triplett, who is based in Kansas City but was scheduled to visit Springfield April 11. “They’ve done some of that, but now they’re looking at other things that can be done, and one is consumer-directed health care with a higher deductible.”

Higher deductibles mean higher risk for employees, but Missouri State University finance professor Stanley Adamson said that increased risk means lower premiums, making the trade-off attractive to employers and some employees.

He added that Health Savings Accounts allow individuals to have total control over their money – how it’s invested and what it’s used for – and can accumulate funds over time.

“If those monies aren’t used entirely in a year, you can continue to accumulate the money and draw interest on it, saving it for when and if you need it,” Adamson said of HSAs. “With a traditional flexible spending account, when you put money aside, if you don’t use it (before year’s end), you lose it.”

On the downside

Despite such advantages, Adamson said employee perception is among the drawbacks to Health Savings Accounts.

“If you’re dealing with an employee that is relatively low-income, these increases in front-end deductibles are going to be viewed as a reduction in benefits,” he said. “It’s not going to be well-received by any employee probably, but certainly not those with lower incomes.”

He noted that reductions in taxable income aren’t a big incentive for low-income employees, as 40 percent of all Americans don’t make enough money to pay income taxes at all.

Adamson also said that some companies offer the high-deductible health plans and accompanying Health Savings Accounts in addition to a traditional insurance plan – but this, too, has its risks.

“The higher-income people, or the younger and healthier people, would opt for the high-deductible plan, leaving the older and higher-risk people in the other plan, which would cause premiums to increase,” he said.

UMB’s Triplett said the biggest challenge associated with Health Savings Accounts is educating consumers to think differently about health care.

“The biggest challenge is how to communicate the concept, because it is a change in the basic way people look at health care,” he said. “How do you get the employee to understand that they are now engaged in the process, that these are their dollars and they have control over how they can be spent?”

Growing demand

Challenges aside, demand for Health Savings Accounts is only expected to grow. The U.S. Treasury Department estimates that, assuming the laws regulating Health Savings Accounts are unchanged, up to 30 million people will be covered by Health Savings Accounts by 2010.

“I can think of no disadvantages to the accounts,” said Doug Marrs, chief operating officer for Great Southern Bank. “If you qualify for it and can possibly scrape together the funds for an HSA – and I don’t care where it is or who it’s with – it’s a huge advantage.”

Marrs said Great Southern began offering Health Savings Accounts shortly after they were created in 2004. He declined to say how many accounts the bank had, though he said it was “several hundred.”

Even banks that don’t offer the accounts see the benefits. While Commerce Bank doesn’t offer Health Savings Accounts, Vice President Karen Favor said they are being considered for the institution’s portfolio.

The bank is particularly interested in Health Savings Accounts targeted at small businesses rather than individuals.

“I think there’s a lot of educational issues that go along with the (individual) offering,” Favor said. “Customers drive by a branch, see that we offer Health Savings Accounts and might think they can have one, when in truth they’re going to have a certain type of health care plan and there’s a lot of tax implications and ramifications. That’s I think why the employer channel is more attractive to Commerce, because we’ll know we’re targeting the right audience.”

Posted by Wiley Long at 08:27 AM | Comments (2)

May 08, 2008

A Health Savings Account Can Meet Your Family's Health Needs

Making sure that your family is able to stay healthy partly depends on having a good health insurance program for them. One of the more recent new additions to the health insurance industry is called the Health Savings Account (HSA). This new program enables you to have reduced insurance rates because of a higher deductible, and a tax deferred savings program with it. Here are some of the features of this program:

Reduced Rates

By getting a health insurance program with a high deductible, you are able to greatly reduce your monthly premiums. This is an especially good way to go, if you are younger and currently have pretty good health. The deductible amounts are pre-determined by the government, and you are required to have deductible amounts between $1,050 and $5,250 for singles, and it needs to be between $2,100 and $10,500 for families.

Savings Are Tax Exempt

One of the great benefits of this type of plan is that, like an IRA, you enjoy tax-free income, and interest on the amounts you have in the program. You can put into the plan money that comes off the top of your taxes. There are limits, though, and for singles it is up to $2,700, and for families it is $5,450. A little extra benefit is that you are able to take off of your taxes any money that is deposited into the account all the way up to April 15th. So, if you are coming up to tax time, and find you need to reduce your taxes some more, you can put it into your HSA, and find the tax break you need.

Better Coverage

Health Savings Accounts have an extra real nice feature - they cover more. Some things that you may not have been covered for under another type of policy, you may find that you are covered for with an HSA. This could actually allow you to get a better coverage for less. Things like dental coverage, therapy, even non-prescription medicines and some alternative treatments may also be covered, and even some mental illness treatments, too.

You Keep Control

Under an HSA, you are the one in control of the money. It is yours to use. You can take money out of the account when you want, but only the money that is used only for medical purposes is tax-exempt. Generally, you will be given a card, like a credit card, that gives you access to the account. Whenever you use money from the account, the insurance company automatically gets a receipt, and it is subtracted from your account, and your deductible - and it remains tax exempt.

Like any other insurance policy, once you have paid the deductible amounts, the rest is up to the insurer to pay. By having the high deductible you reduce the premiums considerably. The savings account can also provide a good hedge for your medical insurance program for the future, too, because any money not used toward the deductible remains your money – to use next year, if you need it. On the other hand, the money in your HSA might also be used to provide some money for retirement - assuming you maintain your good health.

Posted by Wiley Long at 10:08 AM | Comments (0)

May 05, 2008

Employer Interest in Health Savings Accounts Is Growing in Colorado

Fifteen percent of Colorado employers offered Health Savings Accounts (HSAs) in 2007, and 23 percent considered offering one, according to a survey conducted by the Mountain States Employers Council (MSEC).

"It's a good thing!" said Linda Gorman, director of health care policy at the Colorado-based Independence Institute. "The more choice you give people, the better off they are. You have more choice with the HSA because you can spend it on anything the IRS deems a legitimate health expense."

Patty Goodwin, overseer of the MSEC study published in February, said she knew of no similar national survey. However, she said she thought Colorado was probably on par with the rest of the nation in HSA offerings.

Lack of Familiarity

One of the biggest challenges HSA advocates face is simply convincing people to explore a less-familiar way of managing health coverage, said Goodwin.

Though many employers offer both Health Savings Accounts and traditional health insurance, she explained employers and employees have a general lack of understanding about them. This causes employees to cling to their traditional plan even if they could benefit from a health savings account.

"HSA adoption rates have usually been dependent on how well the employer educates people to the plan," said Gorman, though even well-informed employees struggle with deciding whether an HSA works best for them.

The tradeoff, Gorman explained, is that the lower cost of an HSA comes with a higher deductible. Consequently, "people are taking baby steps into Health Savings Accounts."

Greater Choice

Because the money paying for medical care comes out of a bank account instead of an insurance company's checkbook, people must decide for themselves whether an illness merits a trip to the doctor or whether they'd be better off waiting it out, Goodwin noted. As an alternative, some HSA owners explore preventive medicine and focus on wellness instead of treating sickness as it happens.

Proponents of Health Savings Accounts maintain HSAs offer a good option overall for consumers who want more control of their medical coverage.

"Here's another way that maybe we can help curb health care costs while giving consumers more choice," said Goodwin.

Posted by Wiley Long at 11:23 AM | Comments (0)

April 29, 2008

Managing Costs With Your Health Savings Account

As health care consumers and employers look to Health Savings Accounts and high deductible plans to reduce their health insurance premiums, the insured are at higher risk for their medical expenses. In exchange for lower premiums, health care consumers spend hundreds or even thousands of dollars on deductibles before their insurance companies pay a nickel. The new trend has health care consumers scrambling.

Denver medical providers offer advice:

1.) C