Health Savings Accounts

As the owner of an independent insurance agency and the founder of a website for the comparison of health insurance, I often asked, “What kind of insurance did you get?” Of course, no one health insurance or health insurance is right for everyone, because everyone has different needs, lives in a different area, etc … but I can certainly feel very well people saying that I personally have a Health Savings Account (HSA) and I love it!
Here are 7 reasons why I love my HSA:
# 1 all contributions to my HSA are tax-deductible

Every dollar that I in my HSA contribution http://www. easytoinsureme. com / United-Health-one. html is deductible each year on the front of my personal 1040 tax return (up to certain annual limits imposed by the IRS – is for the year 2010, the maximum deductible HSA contribution $ 3,050 for singles and $ 6,150 for families with those of 55 years or older get an additional $ 1000 allocated to contain the maximum contribution). This contribution HSA deduction is great because it is a “above the line” deduction means that prior to its arrival in your Adjusted Gross Income (AGI) point is deducted. To this deduction even better, there is absolutely no income PhaseOut so for the HSA contribution deduction that you are Bill Gates or Warren Buffet and could still take the full HSA contribution deduction. The more you make money from the appeal of this deduction is for you.
# 2 the money in my HSA tax free Grows

All the money grows tax free in my health savings account as long as I get the money in the account for qualified medical expenses or wait, I’m only using 65 years of age or older, and use it for my retirement. Yes, you heard me right, “Tax Free” not only “Deferred tax”, as you may be accustomed to hearing about a 401K or other similar tax deferred account.
# 3 I can select any Health Insurance Company I Want

Another reason why I love my HSA is that the HSA is simply a savings account A number of specific paperwork, so it receives special treatment from the IRS. The HSA itself is NOT health insurance, but is simply the second component, which is commonly known as one of the HSA health insurance with the first component is a high deductible health insurance (after the IRS has a high deductible health insurance every thought health plan with a deductible of at least $ 1,200 for singles and $ 2,400 for families – so still pretty low minimums). What this means is that many different banks offering Health Savings Accounts and you can bank that you prefer to choose your HSA, and then you buy your high deductible health insurance from any insurance that you like. You can even purchase a plan from United Health Care for one year and then shop around for the second year and switch to a potentially cheaper plan with Humana and then in the third year, switch to Blue Cross Blue Shield, etc. This ability to comparison shop and not constantly tied to a particular insurance provider had a major advantage of an HSA (such as your actual savings account component of the plan is still stays with your original bank).
# 4 I pay very low monthly premiums

The higher the deductible on your insurance, you will reduce your monthly payments. Since a high deductible health insurance a condition for opening a Health Savings Account is then one of the nice things about the plans is that the monthly premiums are very low comparatively, I’d much rather save a large sum of money every month, pay less premiums each months pay as a very low deductible and co-pays extra.
# 5 I’m in control My Health Care Dollars

The nice thing about a Health Savings Account and Flexible Spending Account is a comparison that, while Flex Spending account you use to require the money in the account each year all the money you contribute to an HSA rolls over from year to year. In fact, as mentioned above, even if you do not end up then with the money in the HSA for medical expenses (a good thing!) If you can reach 65 years you withdraw the money tax free for your retirement. Most HSA custodians will be an option to save your HSA money in a savings account, deposit account location, etc., as the decision is yours, where you place your HSA account money.
# 6 I Can Rest Easy

While some people sleep easy at night knowing better, that they have a very low deductible and low co-payments for things like doctor visits and prescriptions, and I understand that I like but to think like this – after your first year of the contribution, the maximum your HSA if you have all that money with a large unexpected medical bill then also enough money in the HSA for years two and Even on when you meet your deductible then, as long as your HSA health insurance covers all costs to 100% once the deductible has, is actually a zero-cost out of pocket, because you already reached the money in your HSA account! Sure, if you start an HSA tomorrow, and you have only contributed a few hundred dollars to the account so far and you get a huge medical bill occurred then you have to come out of pocket for your deductible amount, but once you have Your HSA contribution maxed for a year or two, then you are essentially free house with possibly no additional cost out of pocket for large medical bills!
# 7 HSA Setup is very simple

If you can open savings account, you can open a Health Savings Account as easily. If you are a regular health insurance, then you can go for a high deductible health insurance as easy to apply. Almost every bank has available and almost every health insurance HSA high deductible health insurance plans is available. Setting up an HSA so simple that I probably took twice as long to apply that provision as it would give you both a health savings account at your bank and write a high deductible health insurance with your health insurance.