Does A Health Care Savings Account Lower My Monthly Insurance Costs?

By Cathy Wilson Posted in Health Insurance News



An HSA or Health Savings Account is a qualified deductible health insurance plan held in an individual tax exempt savings or investment trust. Premiums are less than a fully insured group policy with co-pays and are funded from with the savings realized by not participating in a group plan that include co-pays and deductibles.

Like an IRA, an HSA grows tax free and can be deducted from an individual’s gross income. HSA money may be used during the entire year for any allowable medical expense.

An HSA not only allows you to save money tax free, they are also 100 percent tax deductible and may accrue tax free interest. Plus, payments for qualified medical expenses are both tax penalty and fee free. Because HSAs usually have a high deductible, monthly premiums are lower than traditional group plans.

Using My HSA Funds

You many use HSA funds for any qualified medical expense. HSA funds are made available to the individual with checks or by debit card and each time you pay a provider, because HSAs have no pre-approval system, you simply write a check or hand them a debit card. There are no claim forms to complete and all receipts from providers can be claimed when filing taxes.

How Does an HSA Help Me Save Money

HSAs help individuals save money because they are not paying costly monthly group premiums, plus there are no out-of-pocket co-pays. Moreover, HSAs allow individuals to shop for providers and because you are paying the provider directly, there are usually significant discounts. Combined with tax free savings, qualified medical deductions and a 100 percent contribution deduction, HSAs are ideal vehicles to provide an excellent health care plan.

Related posts:

  1. How Do You Start A Health Care Savings Account?
  2. What Is A Health Care Savings Account?
  3. Little Known Tips On How To Manage Your Health Savings Account
  4. What Is A Health Savings Account For Health Insurance Coverage?
  5. What Are Archer Medical Savings Accounts For A Health Insurance Policy?






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