To HSA or Not to HSA, That is the Question..

As health care costs rise higher and higher, consumers are looking for ways to make their health care dollars go farther. One way to do that is to create a Health Savings Account or "HSA" to help. A few questions might come to mind when looking at an HSA. The first one for many Americans is..what is an HSA? The second question is..would this be a good option for me and my family? Lastly, where would I find an HSA? These are great questions and finding the right answers can help you manage your health care expenses. An HSA is a personal, tax-advantaged saving account that works with an qualified health plan these plans are known as high deductible health plan (HDHP). Like the name implies these plans come with a minimum deductible of $1,150 for single coverage, or $2,300 for family coverage, and will go up as much as $10,000 a month. When shopping for HSA qualified plans make sure you see the word "HSA compatible". There are three main reasons that someone would use an HSA. First, contributions and investment earnings are tax-free up to the specified limit. Finally, withdrawals used for qualified medical expenses are also tax-free. Sounds pretty good right? Understand that HSA's are not for everyone and there are few things you want to consider before taking out a HDHP.
The person that is right for an HSA is one who is wanting to save some money on monthly premiums and self insure yourself on small claims by using your own tax deferred dollars. Since this is not a “use it or lose it” provision, the account stays with you through your entire lifetime. Also, someone who has a family will typically spend more than 10% of their entire income on medical care (check ups, glasses, braces, etc). An HSA is a great way to make these dollars stretch. If you have any questions you can email me personally at j.marvin@comparemyinsuranceonline.com to get more information and find out if this step is right for you. Finally, there are many places that offer HSA's. Many financial planning institutions, banks, insurance companies offer these plans. A great website that I have found for having a policy that is not connected to a specific product (so if you change carriers you still have the same HSA card) is hsabank.com Before you take the plunge into the HSA pool make sure you get all of your options and understand these options to guarantee you make the best decision for you and your family.