Why HSA?
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HSAs Lower Your Health Insurance Premiums
You can significantly reduce your premiums by simply changing to a qualified High Deductible Health Plan (HDHP). Sometimes referred to as a "catastrophic" health insurance plan, an HDHP is an inexpensive plan that generally doesn't pay for the first several thousand dollars of health care expenses (i.e., your "deductible") but will generally cover you after that. Of course, you can deposit your premium savings into a Health Savings Account (HSA) to be used for the "first dollar" expenses. If you do not have claims greater than the amount deposited, the money can be invested for future claims. To learn more about health insurance, click here.
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HSAs Help You Save Money on Taxes
An HSA is the only vehicle in the IRS code that has triple tax savings. Contributions are tax-deductible, allowing you to take a top-line deduction, and your earnings grow tax-free. For 2007, if you had self-only HDHP coverage, your contribution maximum was $2,850; $5,650 if family HDHP. For 2008, the limits increase to $2,900 for an individual and $5,800 for a family. If the money is used for a qualified medical expense, it is also distributed tax-free. Once you reach 65, you may also take a distribution for a non-medical expense and pay regular income tax on the money. This is the same as taking a distribution from a 401k or an IRA. To learn more about the tax consequences of an HSA, click here.
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HSAs Put You In Control Of Your Healthcare Decisions
With an HSA you have the ability to choose your provider and where you want to receive services, rather than the insurance company choosing for you. Since your spending will directly influence your account, we encourage you to evaluate the cost and value of the medical service. You can use the money in your HSA to pay for any expense viewed as "Medically Necessary" to maintain your or your family's health. This includes all necessary medical, dental, vision & prescriptions. For a complete list of Qualified Medical Expenses, click here.
