The Benefits of a Health Savings Account Plan
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by: Andrew Warren
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There are quite a few benefits of a Heath Savings Account plan. First, HSAs are a great safety net for those with a high deductible on their health insurance policy. People choose high deductible plans so that they can get lower monthly premiums and more affordable insurance.
With the ever- rising costs of health insurance premium, many people have been going without coverage all together. Those determined to have coverage, often have no choice but to agree to a much higher deductible. High deductible plans are much better than not having any health insurance coverage at all and HSAs, with their interest producing, tax deductible banking makes these plans more palatable.
With a health savings account plan, you will place funds into an account for the purpose of covering that deductible and other minor medical needs. You get to decide (up until the caps determined by the government for individuals and families) how much money you will deposit each month towards the plan. This system offers the consumer greater control of his own health care spending.
Hopefully you will rarely have to access funds to pay for medical bills, but it is good to have it readily available and the funds can be used for doctor visits, vision, dental, prescription and many over-the-counter medications as well.
Money placed in a health savings account is yours. They can be transferred elsewhere, in conjunction with any other qualified HSA insurance account and transferred as part of your estate. While the funds deposited into your health savings account belong to you forever, should you choose to use the funds for anything other than a qualified medical expense, you will be charged a penalty by the IRS.
As long as the funds you place into your health savings account plan are used for qualified medial expenses. they remain tax exempt and tax deductible. This means you will end up paying less money for taxes over the course of the year.
This can result in a great tax reduction. At the same time you will be able to have money set aside for any small medical bills that may come along. Major bills will be covered by your high deductible health insurance plan.
Being prepared for such unforeseen emergencies is very important. It can make the difference between you remaining financially stable or being in a situation you can’t escape. High medical bills can result in financial struggles, losing your home, and ruining your credit. For many people, this is an excellent alternative to traditional health plans and for those wanting greater control and lower expenses, this is their first choice. |
About the Author
Andrew Warren is the owner of Simple HSA Plans, a Web Site and health insurance agency designed to help California residents find the health insurance plans most consistent with their needs and budget.
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