Health Savings Accounts Plans
(HSA medical insurance) are already a proven success & the number
of people switching to them from a traditional health plan is growing
greatly each year.
Health Savings Accounts are literally available today to
adults in the U.S. They offer significant financial benefits
including tax, premium, & retirement savings to you, your family,
and/or your business. Since first being signed into law in
December 2003 by the Federal Government, Health Savings Account plans
(a.k.a. HSA medical insurance plans) are already a proven success &
the number of people switching to HSAs from traditional health
plans is growing greatly each year. Medical Insurance
is the most recent form of an investment vehicle. Knowledge is power
when it comes to your finances so take the opportunity to become
informed. I advise people not miss out on the extraordinary short &
long term benefits that HSAs create.
savings account is made up of two parts:
Component 1 is the health insurance plan (one
considered HSA-qualified by the Internal Revenue Service), and
Component 2 is the savings account. You may make
voluntary contributions to this account so that you are given 100%
tax-free privileges on all medical expenses and the ability to
build an additional retirement account. Imagine never paying
taxes again on virtually any type of medical related expense
including items not covered by Medicare or regular health insurance;
For example acupuncture, glasses & vision care, over the counter
aspirin, etc. can all be purchased tax-free. Click on
Savings Account Deduction to read more.
If you are age
55 and over, you have the added advantage of being able to make $1000
per year (2009) in additional catch-up contributions beyond the
annual $3000 limit for individuals. A married couple can each open
their own HSA accounts thereby doubling their contribution limits.
Savings Plans to read about 2008 & 2009 contribution
limits and guidelines in greater detail.
HSA health savings
plans are actually simple to understand.
A Health Savings
Account enables you to:
1) Have access to a wide PPO
network and in most all cases provides the coverage to allow you
to continue seeing your current doctors & specialists.
Lower your health insurance premiumsby 25 percent to 50
percent. To accomplish this, be sure to compare health insurance
plans with different carriers. An individual can typically save
between $80 to $250 dollars per month when they change their plan
over from a traditional health insurance plan to a HSA qualified high
deductible health savings plan. A family can save even more. Now the
following point you should clearly envision and carefully think
through. Since HSA plans have higher deductibles than most
traditional health plans, forget any negative preconceived notions
you may have about having a plan with a high deductible. Do not pay
attention to what you may have heard. Don't be deceived. Yes, you'll
now have high deductible insurance, but there are plenty of safety
nets that will be there to protect you if & when the need
After you get set-up, the first step to take is to
place the money you are saving from having a new lower HSA monthly
premium and place it into your new Health Savings Account each month.
Realize that doing this doesn't cost you anything; you are just
transferring the money you are saving into another location.
is the point: All of these above benefits & factors strongly
reduce the impact of having a high deductible plan.
Realistically there will be often periods of time where your money is
only growing and never being withdrawn because you have little or no
Here's another benefit. The Internal
Revenue Service (IRS) rule says that at age 65 the money from your
Health Savings Account may be withdrawn penalty-free for any
reason, not just for HSA
qualified expenses. In this case, you will pay only the
regular income tax rate, just as you would when withdrawing from your
IRA. However, your income during retirement generally goes way down
as will the taxes required to pay. You will be paying much less
income tax on these withdrawals than before you were retired.
Finally, understand that the funds in your HSA are always yours,
without exception, and they rollover from year to year. You are
also allowed to do a one time rollover from an IRA into a Health
Savings Account without any penalty.
And you may continue
contributing the maximum to your IRA every year while still also
making the maximum allowed HSA contributions. Having both types
of retirement accounts is the perfect scenario, but if you can afford
contributing to only one, I would recommend the Health Savings
Account. This is because HSAs are more than solely a retirement
Last but not least, although insurance
companies are legally obligated to offer HSA health savings
plans in their line of products, they are not going out of their way
to promote & publicize these plans. Doing so would decrease THEIR
Now you are probably starting to see the real
picture. As a consumer today you really must take matters into your
hands and become authentically informed. The expert
advisorsat HSAHealthSavings are on a mission
to help millions of folks and their families clearly see the
tremendous financial benefits that are readily attainable. We are
excited as the benefits of health savings plans can literally
transform one's financial portfolio in the long and short
term. And regardless of income level, if you pay for health insurance
at all, you owe it to yourself to consider and compare the benefits
of HSA health savings plans versus the traditional health plans you
are accustomed to.
Andy Devore is a licensed insurance
broker & Health Savings Account advisor at HSAHealthSavings. Andy
does not charge any fees ever to advocate for you and provide
consulting services. You will benefit from having an advocate from http://www.hsa-health-savings.com.
To speak with Andy or another expert advisor about HSAs or other
related insurance topics, you may visit us by clicking Health
Savings Accountor by calling us Toll Free