Adding More Value To Your Plan With a Health Savings Account

High-deductible health plans can be paired with a Health Savings Account (HSA) that offers qualified members the opportunity to save on taxes. Our HSA-eligible High-deductible health plans enable you to receive benefits at lower-cost dues/premiums while taking a more active role in your health choices.

What is an HSA?

Health Savings Accounts (HSAs) are tax-advantaged personal savings or investment accounts intended for payment of qualified medical expenses that may be established in combination with qualifying high-deductible health plans. HSAs offer a number of benefits compared to other tax-advantaged accounts.

HSAs have higher contribution limits than Archer Medical Savings Accounts (MSAs) or most Flexible Spending Accounts (FSAs)

HSAs have broader eligibility guidelines

Both employees and employers may contribute in the same year to a HSA

Catch-up contributions are allowed for people ages 55 to 65 for a HSA

Portability; Members Own and control the accounts even if they change jobs.!

If you enroll in a PPO Savings Plan and are qualified to open an HSA, you can use your tax-free HSA funds to pay for qualified medical expenses, even those that may not be covered by your health plan, including dentist visits, eye exams and even acupuncture. You can also accumulate tax-free funds from year to year for future healthcare funding such as long-term care.

Preferred HSA Administrator Delivers Convenience and Cost Savings

To provide you with a one-stop HSA experience, many insurance companies have carefully researched and selected a bank or other financial instituiton as the preferred administrator to manage your HSA. Often you will benefit from no transaction fees, low monthly administration fees and the comprehensive customer service offered by the selected financial institution. However, you may establish an HSA with your own financial institution provided it offers an HSA.

HSA And The IRS

Many Insurance companies have relationships with financial institution's HSA administrator but the insurance company does not provide tax advice!. If you intend to purchase this plan to use with an HSA for tax purposes you should consult with your tax advisor about whether you are eligible and whether your HSA meets all legal requirements.

Although most plans meet the requirements set out by congress for a HSA, the Internal Revenue Service has not ruled on whether the plans are qualified as a high-deductible health plan. Should you purchase one of these plans to obtain the income tax benefits associated with an HSA and the Internal Revenue Service were to rule that these plans do not qualify as high-deductible health plans, you may not be eligible for the income tax benefits associated with an HSA. In this instance, you may have adverse income tax consequences with respect to your HSA for all years in which you were not eligible. However, if there were such a ruling, or if government requirements for an HSA eligible high-deductible health plan change, most insurers will amend the plans, to meet the requirements of a qualified plan. A change in the plans dues may also be required as a result of a change in the plan(s).

For further information and for all your health insurance needs, please call us at our toll free number 877-477-4602 and talk to an actual person and learn the difference personalized service can mean when learning about and purchasing health insurance.

Health SAVINGS ACCOUNT NEWS

The United State Treasury released new guidelines for Health Saving Accounts (HSAs) (read more)