- 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
Understanding Illinois Health Savings Accounts (HSA)
Health Savings Accounts let you save money on your taxes, while lowering the out-of-pocket expenses you pay for your healthcare. And with an HSA, the money you save is tax-free.
How Do Health Savings Accounts Work?
Here’s how a health savings account works: a bank account is created to save part of your income to pay for medical expenses. You or your employer can contribute money to the account. Usually, the money is deposited into the account before any taxes are paid on it.
You can use the money in your HSA for almost any health related expense, from eyeglasses to your health plan's deductible. You can even pay for common over-the-counter medicines like cough syrup using HSA funds.
What You Need to Get an HSA
Typically, money is deposited into an HSA through your employer's fringe benefits program — meaning it comes right out of your paycheck. But you can also set up an HSA even if your employer doesn't have a fringe benefits program. In that case, you would be able to deduct the amount you deposited from your taxable income the next year.
Whether your employer has a fringe benefits program or not, you still need to be enrolled with a high deductible health plan (HDHP) to qualify for your health savings account. To be considered an HDHP, the plan has to have a deductible of $1,050 or higher. Many HSA-compatible policies are PPO plans.
Find A Plan And Start Your HSA
If you are interested in health savings accounts, enroll in a high deductible health plan to become eligible. Start by getting your free insurance quotes so our agents can help find the right plan for you. Or learn more about Health Savings Accounts...
