| By :
Wiley Long
Health Savings Accounts give people a better way to pay for current health expenses, and save for future qualified medical and retiree health expenses. The tax advantages include: - Your Health Savings Account (HSA) contributions are tax-deductible. - The interest earned on your account is tax-free while kept in the account. - Withdrawals from your account for qualified medical expenses are tax-free. As the account owner: - You, not a third party or health insurer, decide how to spend your money. - You choose the types of investments you want to make your money grow. - You keep all unused funds, and interest left in your account. - You take your account with you if you change jobs, or are unemployed. - You maintain your account even when you change plans, or retire. You don't have to use the money in your account by any deadline, either. All unused funds, or interest left in your account will be carried over from year to year - with no limit. Do You Have to Pay for a Health Savings Account? Like other savings accounts, you don't buy a Health Savings Account. Unlike other savings accounts, you can deposit money into your HSA on a tax-preferred basis. The only product you buy is High Deductible Health Insurance. What Is High Deductible Health Insurance? Sometimes referred to as "catastrophic" plans, high deductible health insurance plans are less-expensive plans to cover major medical costs. High-deductible plans generally don't pay for the first several thousand dollars of health care expense. You can use the money in your Health Savings Account to pay for health care costs until the deductible is met. These plans can include a maximum limit on your out-of-pocket medical expenses - including the deductible. You must be covered by High Deductible Health Insurance to take advantage of Health Savings Accounts. High-deductible plans have lower monthly premiums, and you can deposit the money you save on premiums into your interest-earning account. What if You Want Preventative Care? High Deductible Health Insurance may provide preventive care benefits without a deductible, or with a deductible below the minimum annual deductible. Preventive care includes, but is not limited to: - Adult and Child Immunizations - Obesity Weight-loss Programs - Periodic Health Evaluations - such as annual exams - Routine Prenatal and Well Child Care - Tests and Diagnostic Procedures with routine exams - Tobacco Cessation Programs. Screening for certain conditions is also preventive care, such as: - Cancer - Endocrine Conditions - Infectious Diseases - Mental Health Conditions - Metabolic Conditions - Musculo-skeletal Disorders - Nutritional Conditions - Obstetric and Gynecologic Conditions - Pediatric Conditions - Substance Abuse - Vascular Diseases - Vision and Hearing Disorders. Make Your Own Decisions and Save More Money You're free to choose the types of investments you want to make your money grow, and your accounts' plan balance will grow faster because it's earning tax-free interest. Your withdrawals for qualified medical expenses will be tax-free, too. Employers can't take your HSA. It's yours to keep if you change jobs, become unemployed, or retire. That's true even when you change plans, and you don't have to use the money in your account to meet any deadlines. Whatever money or interest remains in your account will be carried over from year to year. Lower premiums for High Deductible Health Insurance can help you save each month, and the money you deposit into your Health Savings Account is tax-deductible.
|
![[Valid RSS feed]](http://www.articlesbacklink.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
