- Why Do I Need Health Insurance?
- What to Look For in Healthcare
- Saving Money On Healthcare
- Blue Cross Blue Shield Plans
- Why Blue Cross Blue Shield?
- Health Savings Accounts
- Short Term Plans
- Dental Care
- Insurance For Students
- Insurance For Small Business
…More Info About Health Savings Accounts (HSAs)
Health Savings Accounts were introduced as a way to help save money on healthcare for people and their employers.
Health Savings Accounts were created by the Medicare Prescription Drug, Improvement, and Modernization Act in 2004. They were established as a way of fighting the rising costs of healthcare. Health Savings Accounts give people more control over their healthcare, and take some of the burden of providing healthcare off of employers.
Money Toward Your HSA Is An Investment
Money in an HSA is invested and can earn interest — and you won't have to pay taxes on it. When you decide to take the income deposited out of the account, it will remain tax-free if you use the funds for medical services or supplies. Some examples of qualified medical services and supplies include:
- Eyeglasses or contacts
- Chiropractic care
- Over-the-counter drugs
- Your health plan's deductibles and coinsurance
The money you deposit into your HSA rolls over from year to year. And when you reach age 65, you can withdraw the money for any reason. Not only does an HSA help you pay for healthcare, it helps you put aside a little something extra for your retirement.
Withdrawing Money
Withdrawing funds for medical expenses varies from plan to plan. Plans normally use debit cards, checks, or other reimbursement methods.
If you use your funds for non-medical expenses, your withdrawal will be taxed — and there will be an extra 10% tax penalty on top. This means that budgeting for all your expenses is crucial.
How Much Can I Put into my HSA?
The maximum amount you can put into an HSA is either the amount of your health plan’s deductible, or $2,700 — whichever is less. For families who share a plan, they can deposit the amount of their deductible or $5,450. This limit is set by the Internal Revenue Service every year, and could change in the future.
Some limits can vary according to how long you are enrolled in the HSA and for those who are 55 years or older. Qualified people over the age of 55 can deposit an extra $700 a year.
Don’t Forget…
To qualify for an HSA, you'll need a high deductible health plan (HDHP) — usually a PPO plan. And your deductible needs to be at least $1,050.
But a higher deductible usually means a lower premium, and that saves you money each month.
It's easy to find the right plan. We can help you choose the HDHP plan that fits your budget and your healthcare needs. Get free quotes from our professional agents and start saving with your HSA.
