a Health Savings Account Works
Health Savings Accounts (HSAs) are simple and easy to understand.
Health Savings Account (or HSA) is a tax-favored savings account combined with a
high-deductible health insurance plan
enable you to take control of your own health care decisions by allowing you to deposit
tax-deductible funds into an account that you can use to cover medical
To start, you
must have a high-deductible health insurance plan that qualifies to be combined with an HSA account. These plans
are available through many different insurance companies. The plans are all similar in that they all have
deductibles ranging between $1,200 - $5,950 for singles, and $2,400 - $11,900 for
insurance policy is in place, you may begin to fund your HSA account.
HSA’s allow you
to avoid federal income tax by saving up to $3,050 for singles or $6,150 for families, into your
HSA account. There is no minimum deposit, but whatever you deposit into your account counts as a tax
deduction for income taxes. You get a federal income tax deduction for money you put in, even if you take the
standard deduction and don’t itemize deductions. This tax deduction is available to everyone, with no
limitations on the amount.
and Premium Savings
Accounts can save you money on your insurance premiums, as well as your income taxes. Compared to a traditional
plan, health insurance premiums are usually much lower with an HSA. In addition, there is no other
investment vehicle that allows you a tax deduction from day one, combined with the ability to take a
tax-deductible withdrawal immediately, if needed. The total savings that can be achieved from the lower
premiums along with the tax-free deductions could be $5,000 or more every year. That kind of money could
certainly cover the lease of that new BMW you’ve been eyeing! Or invest it back into your
Though you have
received a tax deduction by putting your money into this account, the money still belongs to you,
and can be spent tax free, provided you spend it on qualified
medical expenses. Naturally, this would include expenses generated from going to the doctor, buying prescription
drugs, or paying other expenses that count toward your deductible. Once you have met your deductible, the health
insurance covers your medical expenses according to your policy (many HSA plans cover 100% after
able to withdraw your money tax-free to cover these types of expenses, you can use the funds in your HSA account
to cover other costs that aren’t normally covered by a traditional health insurance
Braces and other necessary procedures.
includes the charges of psychiatrists, psychologists, psychoanalysts, and psychotherapists.
could include hydrotherapy, chiropractor services, or medical massage therapy.
could include acupuncture, Ayurvedic Medicine, aromatherapy, homeopathy, Traditional Chinese Medicine
(TCM), nutritional consulting, or even healing services provided by a Christian Science Practitioner or
other type healer.
and lodging expenses, when
related to health care
incurred as part of a preventive health program. This could include vaccines, blood tests,
metabolism tests, and other lab tests, and even fees paid to a health institute or vitamins if
prescribed by a doctor.
as aspirin or cough syrup
Term Care Insurance premiums to pay
for qualified long-term care
are not covered by your health insurance policy
Also note that
the HSA account can be used to pay these expenses for any spouse or dependent member of the family, even if they are not covered under the insurance policy. (That should
get those wheels turning!)
to Learn More and Choose the Right HSA Plan
Making sure you have the correct HSA plan for you and your family’s need is crucial.
With multiple companies offering multiple HSA Health Plans, it can seem overwhelming. And not all plans are created
equal! One company may offer preventative services on a first dollar basis, while another does not. One company may
not accept a pre-existing condition, while another does.
To help you sort through the various options and find the right plan for you, it’s
best to talk with an Independent Insurance Broker who has experience with HSA’s.
My company, NorthWest Georgia
Insurance, is one such Independent Brokerage. We specialize in
helping business owners, self employed and individuals navigate the craziness that is the health insurance
industry. We can help you find the right plan, at the right price. We can even help show you how you can write off
MORE of your medical expenses for tax purposes (often $1,000’s of dollars in extra
Best of all, our services are 100% free to you!
Do you have employees that you either already provide coverage to, or want to provide
coverage to? We can show you how to offer better coverage, at less expense to you. The traditional way of offering
insurance, and dealing with 30% rate increases each and every year is outdated; There are simply better (and more
cost-effective) ways to offer your employees outstanding benefits!
So contact us today, and let us help you improve your coverage, and save money! You
can reach us via email, phone, or even LinkedIn! You can also click the "Get a Quote" button at the top of the
website to reach us.
NorthWest Georgia Insurance