Health Savings Accounts 101 (HSA)

If you are healthy but sick of spending thousands of dollars on health insurance, a Health Savings Account is the answer.  Forbes Magazine Investment Guide

What are HSAs?

Health Savings Accounts (HSAs) are privately owned savings accounts funded with pretax dollars. Created by the Medicare Modernization Act of 2003, HSAs are similar to 401(k) retirement plans, but rather than allow people to save for retirement, HSAs allow people to save for future medical expenses.

By law, HSAs must be paired with a High Deductible Health Insurance plan. Since such insurance plans typically cost less than a traditional co-pay type plan the premium savings can be deposited into the H.S.A. (Health Savings Account). This money is then used to pay for medical expenses up to the annual deductible of the high deductible health insurance plan. Any money left in the HSA account at the end of the year rolls over to the next year.

What is a qualified High Deductible Health Plan?

 To receive the benefits of an H.S.A., the law requires that the savings account be combined with a H.S.A. qualified high deductible insurance plan. To be considered an H.S.A. eligible plan it must meet the following criteria;

• The deductible is higher then $1,200 for individuals and $2,400 for families for 2012.
• The sum of the annual deductible and other annual out of pocket expenses required to be paid under the plan (premiums excluded) does not exceed $6,050 for individuals and $12,100 for families for 2012.

When you are reviewing quotes on this site just sort by "Health Savings Account" plans or call one of our agents for assistance (Tel: 478-471-1220). Or e-mail us at sales@ehealthplanners.com.

How much money can I contribute to my H.S.A.?

In 2012 you can contribute to your H.S.A. $3,100 for individual coverage and $6,250 for family coverage. Individuals who are 55 and older can contribute an additional catch-up contribution of $1000 for 2012. 

You are not required to fully fund your H.S.A. You may choose to fund the minimum as required by some H.S.A. Administrators or the annual maximum.

Four Major Tax benefits Are

• Tax-deductible: Contributions to the H.S.A. are 100% deductible; similar to an IRA.
• Tax-deferred: Interest earnings accumulate tax-deferred, and if used for medical expenses, are tax-free.
• Tax-free: Withdraws to pay for qualified medical expenses are never taxed.
• Your money:  Money in your H.S.A. account is never forfeited at the end of the year; it continues to grow, tax-deferred.

What are my Health Savings Account investment options?

Depending upon which institution you choose as your H.S.A. Administrator for your health savings account, you will be able to choose from one or more of the following investment options;

• Interest-bearing account
• Certificates of Deposit
• Money Market Funds
• Mutual Funds
• Wide range of equities
• Fixed income investments

Because the range of your investment options is determined by the H.S.A. Administrator you select, you should evaluate your options before setting up the account.

How do I access my H.S.A. account funds?

Accessing those funds will be similar to any other type of checking and or savings account. Most H.S.A. Administrators will give you a choice of options such as checkbook and or debit cards.

Approval or pre-certification is not a requirement of the H.S.A. Administrator. The funds in the account are the sole property of the account holder.

How do I get a quote for myself or family?

Simply click on this link to go to our sites quote engine where you can access dozens of quotes from all the carriers serving Georgia in as little as two minutes time.

We currently offer "Tax qualifed High Deductible Health plans" from nine major carriers including; Aetna, Assurant Health, Blue Cross and Blue Shield of Georgia, Celtic Insurance Company, Consumer's Life, Coventry HealthCare, Humana, Kaiser Permanente and United HealthCareOne

Log on, Sort, Apply On-Line in under an hour. Cool Huh!!