Would
you like the
security of
100% co-insurance?
Many HSA plans
provide for
100% co-insurance
for qualified
expenses after
the deductible
is met. This
saves you money.
See the following
examples:
Do
you want to
benefit from
lower premiums?
Many people
use only a small
fraction of
the insurance
they are paying
for. The best
way to lower
premiums is
to accept a
higher deductible.
With an HSA
you get lower
premiums and
can save some
or all of the
savings in a medical
savings account.
The few times
each year you
need to visit
the doctor for
routine visits
the money you
saved is ready
to be spent.
Read on for
more on HSA's.
HSA
Basics
Health Savings
Accounts are
a new option
for health insurance
and they have
two parts. The
first part is
a health insurance
policy that
covers large
hospital bills.
The second part
of the Health
Savings Account
is an investment
account or retirement
account from
which you can
withdraw money
tax-free for
medical care.
Otherwise, the
money accumulates
with tax-free
interest until
retirement,
when you can
withdraw for
any purpose
and pay normal
income taxes.
HOW
HSAs WORK
Health Savings
Accounts (HSAs)
give workers
the opportunity
to save tax-free
for routine
expenses, the
security of
insurance against
major illness,
and the freedom
of knowing you
can take your
account with
you whenever
you change jobs.
In late 2003,
legislation
was signed creating
tax-free Health
Savings Accounts
- a new option
in coverage
which will give
millions of
Americans access
to affordable
health care.
These accounts
can reduce health
insurance premiums
for families
by thousands
of dollars annually.
How
HSAs Work
You can set
up an HSA with
the purchase
of a low-cost,
high-deductible
insurance policy
to cover major
medical expenses.
The money you
contribute to
your HSA is
tax-deductible.
Contributions
can be made
each year up
to the amount
of the major
medical policy's
annual deductible,
with a cap of
$2,600 for individuals
and $5,150 for
families. Individuals
over age 55
can make extra
contributions
to their accounts
($500 in 2004,
increasing to
$1000 by 2009)
and still enjoy
the same tax
advantages.
Money from
the HSA can
be withdrawn
tax-free when
used to pay
routine medical
bills, like
doctor visits
or medicines.
The money can
also be saved
in the account
and carried
over into the
next year, earning
interest tax-free.
You own and
control the
HSA and keep
it whether you
change jobs
or move.
You can spend
money from your
HSA on the doctor
or pharmacy
of your choice.
You and your
doctor determine
which medical
goods and services
you need, without
interference
from an insurance
company. With
HSAs, less of
your money goes
to insurance
companies and
more money stays
with you and
your family.
Can you benefit
from saving
money instead
of paying taxes?
Money from
the Health Savings
Account can
be used to pay
medical bills
below the insurance
policy's deductible.
It can also
be used to pay
for expenses
that insurance
does not cover,
like contact
lenses, over-the-counter
medicines, or
braces for your
children.
Most
individuals
and families
have few medical
bills during
some years and
higher expenses
in others. During
years when your
health care
spending is
low, you can
leave the money
in your HSA
- where it will
earn tax-free
interest and
be available
in years when
unexpected medical
expenses arise.
The major medical
insurance policy
protects you
against big
medical expenses,
like hospital
stays, and provides
peace of mind
by limiting
total out-of-pocket
medical costs
in the event
of serious illness.
Premiums for
these plans
are substantially
less than for
standard health
insurance coverage,
and once you
meet the deductible,
the insurance
covers most
or all of the
medical expenses.
Families and
individuals
faced with a
significant
accident or
illness have
enough to worry
about without
the fear of
financial devastation.
With an HSA
and a major
medical insurance
policy, you
can focus completely
on fighting
the illness,
knowing there
is a manageable
limit to your
share of the
cost of treatment.
Compare
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Free Comparison
We'll compare your current plan with HSA plans, PPO plans from other carriers or HMO plans.
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