Is an HSA the right insurance plan for you?

Five Reasons to have a Health Saving Account:

1. Tax Savings – you can deduct contributions on your federal tax return and some state tax returns


2. Earned Interest – Earn tax-deferred interest on accumulated HSA funds


3. Reduced Insurance Premiums – Use these savings to begin your HSA fund


4. Portability – remember that the HSA stays with you, not your employer


5. Long-Term Savings – the funds in your account will continue to grow with interest, and after 65 you may withdraw from your HSA for any reason without a penalty

You may be wondering if a HSA is the best option for you and your family. If you are single and in good health or you and your family are in relatively good health this plan may be an option. You may want to pay out of pocket for the few doctor visits you have in a year and let your HSA balance grow. Remember that you can place your HSA funds in interest earning accounts at guaranteed interest rates. You will also save 40-50% in premium rates when switching from a co-pay plan to a high deductible insurance plan.

Think of your HSA as a long term medical savings plan. Ideally you will want to maximize your contributions each year and build up the money in your account, taking advantage of interest rates and the investment opportunity.

If you choose to go the HSA route, it will pay to comparison shop. HSAs are growing in popularity which means that insurance companies are vying for your business. Some major health insurance companies that currently offer HSAs are Aetna, American National, Assurant, Humana and UnitedHealthCare.

What is a Health Savings Account?

Qualified HSA Medical Expenses

Labels: Health, Insurance