Fort Collins, CO (PRWEB) November 14, 2007 -- The appeal of an additional
$5,650 tax write-off is spurring thousands of individuals to switch to a health
insurance plan that works with a Health
Savings Account (HSA), before the end of the year.
"We're
getting a tremendous number of inquiries from people who are interested in
the tax benefits," said HSA for America
President Wiley Long. "A family with a HSA-qualifying
high-deductible health plan can put up to $5,650 into their HSA, but their
health insurance must be effective no later than December 31 for them to qualify
for the 2007 tax deduction."
Health
Savings Accounts are special tax-favored savings accounts that anyone
with a qualified high-deductible health insurance plan can open and fund.
Any money put in the account is tax deductible, and can be used tax-free to
pay for future medical expenses. If the money is not withdrawn, it continues
to grow tax-deferred like an IRA. Health Savings Accounts first became
available in January 2004, and today nearly eight million people are covered
by an HSA-qualified health insurance plan.
Long
said that in addition to the immediate tax benefits, there are many other
reasons a record number of people have signed up for HSA
plans. "These plans are about 40% less expensive than conventional
co-pay plans. Many people also like the fact that they can use money
from their HSA to
pay for alternative care like acupuncture or homeopathy. And finally,
many people consider their HSA to be a second retirement account. Some
people will have over $1 million in their account by the time they retire."
According
to Fidelity Investments, the average couple retiring in 2007 will need over
$200,000 to cover medical expenses, not even counting dental, over-the-counter
medications, or long-term care. "Those who have an HSA could have thousands
of additional dollars available to them to cover these expenses in their retirement
years," added Long.
To help people who are buying their own health insurance understand these
changes, HSA for America is hosting
weekly HSA
teleseminars throughout the rest of 2007. "If someone can get their
coverage in place before December 31, they can reduce the amount they pay
Uncle Sam on April 15 by $1,800 or more," said Long. "But they really
do need to apply soon."
HSA
for America offers instant quotes and online applications
for HSA-qualified
health insurance plans on their website. They will also help new
customers choose a bank for their HSA, and set up their account.
About HSA for America:
HSA
for America is the nation's leading independent health
insurance firm specializing in individual and family coverage that works with
a Health Savings Account. Through our comprehensive website we offer
complete information on Health Savings Accounts and qualifying health insurance
plans. We offer instant quotes, online health insurance applications,
and access to several banks that can act as an HSA
administrator for your account.
