Health Saving Accounts

A Health Insurance Alternative

A Health Savings Account (HSA) is a new form of consumer directed health coverage pairing a high deductible health plan with a tax-free savings account. Designed to reduce health care insurance costs for employers and employees, the high deductible policy provides protection against major medical expenses - the HSA is used to pay for day-to-day medical expenses.

This savings product offers individuals an alternative method of paying for their health care. HSAs enable individuals to pay for qualified medical expenses on a tax-favored basis. Contributions are tax-deductible and eligible distributions are tax-free.

Individuals control the money in their HSA. Decisions on how to spend the money are made by the individual without relying on a third party or a health insurer. Funds not spend can carry forward to future years and be used penalty-free after age 65 for any purpose seen fit.

Advantages of HSAs:

Security - High deductible insurance in conjunction with a Health Savings Account protect against high or unexpected bills.

Affordability - Lower health insurance premiums by switching to health insurance coverage with a higher deductible.

Flexibility - Utilize funds to pay for current medical expenses, including expenses that an insurance policy may not cover, or save money in the account for future needs, such as:

• Health insurance or medical expenses if unemployed
• Medical expenses after retirement (before Medicare)
• Out-of-pocket expenses when covered by Medicare
• Long-term care expenses and insurance

Savings - Earn interest on money in an HSA for future medical expenses and grow your account year after year. There are no "use it or lose it" rules for HSAs.

Control - Make all the decisions about how much to put into the account and how to spend the money.

Portability - Accounts are completely portable. Keep an HSA in the event of any of the following:

• Change jobs
• Change medical coverage
• Become unemployed
• Move to another state
• Change marital status

Tax Savings - An HSA provide tax savings:

• Contributions are tax deductible
• Earnings are tax deferred while in the HSA
• Distributions of contributions and earnings are tax free if used to pay for qualified medical expenses.

Are there any questions?

This government regulated account is sure to raise a few question on how to use the account as well as who might be qualified members. Click Here to see a list of Frequently Asked Questions about our Health Savings Accounts.

Truth In Savings Disclosures