Health Savings Account Benefit Programs
If you are looking to save money on insurance premiums and taxes, a health savings account program is an excellent benefit choice. HSA programs work well for individuals and families, as well as for employers of all sizes.
More than 11.4 million Americans are now covered by HSA qualified health plans. Check out the full report on Americans covered by HSA programs: 2013 HSA Census
The concept is simple. Think of a three-legged stool:
1st: You start with a qualified health plan. When you are enrolled in a qualified high deductible health plan, as defined by the IRS, you have the right to open and fund a health savings account with tax-free dollars.
2nd: You open your health savings account with any bank of your choice. If you are covered on an individual health plan, you can contribute up to $3050 for tax year 2010. If you are covered on a family health plan, you can contribute up to $6150 for tax year 2010. These contribution limits will stay at these levels for tax year 2011 as well. Dollars contributed to your health savings account enjoy special tax advantages.
3rd: You utilize health and wellness tools offered by your insurance company or other organizations to learn how to improve your health, how to use your benefits to your best advantage, and to compare medical services and service providers when you need to seek care. Having a higher deductible health plan gives you a great incentive to really pay attention to the care you need, and to the cost of that care.
Many people save significantly on their health plan premiums, and use that savings to begin contributions to their health savings account. Dollars contributed to the account stay there until the accountholder decides to withdraw them. There is no use-it-or-lose-it rule, as there is with flexible spending accounts. As long as the HSA funds are used for qualified medical expenses, as defined by the IRS, you will not pay taxes on them. For many Americans, this is a significant savings.
If you want to talk through your unique situation, please contact us.