HSA Saving Account

yellowpages asked:

Rely Insurance Agency, in Homewood, Alabama, provides health insurance plans for the self-employed and small business owners. They strive to design a plan that fits your needs, including co-payment plans, HSA health savings accounts, and even life insurance policies. Check out their website for more information. Visit us http://www.yellowpages.com/info-19830814/Rely-Insurance-Agency

KRIS

Andy Devore asked:


2009 Health Savings Account Plans:  This article announces the new & improved 2009 annual contribution allowances for Health Savings Account insurance plans.  Please refer my other article (s) that explains in far greater detail about the many specific benefits of HSA Health Savings Plans.

Firstly, if you are still considering an HSA medical plan, you are on the right track.  Wth a Health Savings Account plan, you’ll save significant amounts of money annually on taxes, health insurance premiums, & retirement savings all at the same time. And this can be accomplished without decreasing your real insurance protection or choices of doctors & specialists.  Exercising your financial wisdom and becoming informed is a great decision on your part.

• For 2009, the maximum annual HSA contributions for an eligible individual with self-only coverage is $3,000.  (Get more info on our recommended Health Savings Administrators)

• For family health coverage, the maximum annual HSA contributions is $5,950.

• Catch up contribution for individuals who are 55 years or older has been increased by law to $1,000 for 2009 & all years thereafter.

• Individuals who are eligible (meaning they have an HSA qualified high deductible insurance plan or HDHP) on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch up contributions, if 55 years of age or older by year end), regardless of the number of months the individual was eligible during the year. For individuals who are no longer eligible on that date, both the maximum HSA contributions and catch up contribution are pro-rated based on the number of months of the year that the taxpayer was eligible.

New Amounts for out-of-pocket spending on HSA-Compatible (HDHP) high deductible health insurance plans:

• For 2009, the maximum annual out-of-pocket amounts for HDHP self-coverage increases to $5,800 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,600.

Minimum Deductible Amounts for HSA-Compatible HDHPs:

• For 2009, the minimum deductible for HDHPs increases to $1,150 for self-only coverage and $2,300 for family coverage.

Additionally, a fiscal year plan that satisfies the requirements for a high deductible health insurance plan on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year. Please contact us for no cost advice & expert assistance. See our contact information below in the “about the author” section.

Regardless of income level, if you are paying for health insurance, you owe it to yourself to carefully consider the benefits of an HSA health savings plan versus the traditional health plan you are probably used to.  The expert advisers at http://www.HSA-Health-Savings.com are on a mission because millions of folks and their families are not yet receiving tremendous financial benefits that are so readily attainable TODAY.   We are thrilled as the benefits of health savings plans can literally transform the financial portfolio of people like YOU.



CALVIN

Wiley Long asked:


The people who will have the most money in their Health Savings Account (HSA) are those who fully fund it, put the money in well-performing mutual funds, and stay healthy so they can avoid making premature withdrawals. Diet is the foundation of good health, and the healthiest diet you can eat is the one we evolved to eat, commonly known as The Paleo Diet.

Choose Not To Get Sick

One thing that most Health Savings Account owners have in common is a belief in personal responsibility. They know that if they depend on the government to pay their medical bills in their old age, they’ll be at the mercy of a government bureaucrat, and their choices will be limited. So instead they choose to put money aside each year to cover future expenses. As a thank you, the government provides a nice tax write-off, tax-deferred growth, and tax-free medical spending.

The other area where most people can take more personal responsibility is with their health. People tend to have the attitude that “stuff happens”, and there’s not much you can do to prevent the degenerative diseases that come with aging. This is hogwash.

Longevity has advanced dramatically in the past century. Some of this is due to new drugs and advances in surgical techniques. But most of it is simply lifestyle - people are bathing more frequently, they are working under less dangerous conditions, they are smoking less, and some are eating better food. (Fresh fruits and vegetables were expensive and rare during winter months when my grandfather was a child).

Other than not smoking cigarettes, the most powerful thing you can do to ensure good health is to eat the right foods. Most people get it wrong, but if you follow this advice you will lower your risk of almost all the diseases and disorders that disrupt the lifestyle and drain the bank accounts of so many people when they reach their 50’s, 60’s, and 70’s.

Why Is Nutrition So Confusing?

In 1988, Surgeon General, C. Everett Koop announced that high-fat foods in the American diet had a health risk that was comparable to cigarette smoking. So people began eating no-fat and low-fat foods like bagels and Snackwell cookies. Despite this change, the rate of heart disease, diabetes, and obesity continued to grow.

Then the pendulum swung, with people adopting the Atkins diet and eating nothing but meat, cheese, and eggs. And then Atkins himself had a heart attack.

Part of the problem is that food is big money. So the Food Pyramid put out by the USDA is the product of very heavy lobbying efforts. Another part of the problem is that until now there has been no overriding paradigm about what good nutrition really is.

And so the low-fat vegetarian proponents eat their whole grains and soy burgers, thinking they are eating the right way, while others avoid carbs like the plaque. Who is right? Is the answer “moderation?” And what is that?

Eating the Foods We Evolved To Eat

Imagine that you were a zoo keeper, and it was your job to keep the animals healthy. In one cage you’ve got a giraffe, in another you’ve got a lion, and in the third you have an anteater. What do you feed them?

Most people would answer that you try to feed them what they would eat in the wild. If you do so, you’re most likely to have healthy animals. If you get things mixed up and feed the lion leaves, the giraffe ants, and the anteater meat, you’ll have some sick animals very quickly.

So using the same thinking, what do you feed a human in order to keep him or her optimally healthy? The foods that they evolved to eat, of course.

For 2.five million years humans lived as hunter gatherers. We ate whatever we could pick, find, or catch. So our diet consisted of fruits, vegetables, tubers, meat, and seafood. (And the occasional bug).

It was only 10,000 years ago (500 generations) that humans began eating grains (wheat, rice, corn, etc.) as a regular part of their diet. Dairy consumption (other than mother’s milk) first began approximately 6000 years ago. The regular use of vegetable oils, refined sugar, and salt is even more recent. As I mentioned last month, two-thirds of the foods we now eat are foods that are new to our system, for which we are not genetically adapted.

Evolution moves quite slowly, and the simple fact is that we are not adapted to eating these foods, and they are making us sick.

The Problems With Grains

Grains are the seeds of grasses. The grass seed itself doesn’t want to be eaten, because its purpose is to grow a new blade of grass. So it has various “anti-nutrients” to protect it from pests and predators.

Protease inhibitors in wheat bind trypsin, preventing this digestive enzyme from digesting protein. A protein called wheat germ agglutin (WGA) happens to bind to a hormone receptor in the gut, entering circulation and causing an immediate immune reaction every time you eat a piece of bread.

WGA also increases gut permeability, increasing the likelihood that other undigested dietary components may enter circulation.

Another component found in cereals such as rye, oats, barley, and corn are “alkylresorcinols.” These are thought to provide the seed resistance from pathogenic organisms, but they are also toxic to humans, and have been shown to cause red blood cell destruction and DNA damage.

Grains also raise blood sugar very rapidly, causing a high secretion of insulin from the pancreas. High circulating insulin is characteristic of “metabolic syndrome”, which a vast number of Americans currently suffer from.

What About Milk?

Cow milk contains a hormone called betacellulin, which binds to a receptor in the gut called the EGF receptor. Just one glass of milk has the capacity to stimulate the receptor 10 times as much would normally occur in 24 hours from EGF in the saliva.

When the EGF receptor is stimulated it causes the body to “upregulate” EGF receptors, basically causing more of them to appear. This in turn let’s even more betacellulin enter the body the next time you have some dairy. Upregulation of the EGF receptor is characteristic of many cancers, including breast, prostate, lung, ovarian, and bladder.

No animals other than humans consume milk past the age of weaning.

Prevent Autoimmune Disease

The incidence of autoimmune diseases increases as people age. It occurs when the body loses the ability to distinguish its own proteins from foreign proteins, and starts attacking itself.

Grains and beans contain substances called “lectins”, which are known to increase gut permeability, possibly allowing in gut bacteria substances that can trigger an autoimmune reaction.

Cereal grains and beans also contain proteins with amino acid sequences that are very similar to those found in human collagen and other tissues of the body. If the immune system gets confused, it can start attacking itself (such as with rheumatoid arthritis when joints become swollen and painful).

Get Rid Of Acne

Yes, even something as seemingly minor as acne can be prevented by eating a Paleo diet. Saving just $2000 in doctor visits over the next couple years could result in an extra $25,000 in your HSA by the time you finally decide to take the money out.

If these ideas intrigue you, check out: www.ThePaleoDiet.com



BERNIE

Scott Cooper asked:


Before we talk about saving money in a Health Savings Account (HSA) let’s talk about what an HSA really is all about.

HSA are tax preferred savings accounts for use to pay for qualified medical expenses. HSAs must accompany a qualified high deductible plan (QHDP) to be allowed. Individuals or business can participate in HSA offerings. Money put in to an HSA by an employer is not considered income to the employee. Employees who put money in to their HSA can deduct the contribution on their taxes.

There are many rules that surround HSA offerings and we are not going to delve into all the requirements needed to set up an HSA. This article will talk about the savings aspect of an HSA.

HSA owners can put in $2,850 for single coverage in 2007 and $5,650 for family coverage in 2007. These numbers rise in 2008 to $2,900 and $5,800 respectively. Therefore, HSA account holders can put in a size able amount of cash to help pay for expenses. If the health plan you have accompanying the HSA covers wellness services like childhood immunizations or mammograms, no money will come out of your HSA.

I have seen figures that around 85% of consumers spend less than $1,000 per year on health expenses. Drawing upon this figure, it stands to reason that many consumers would have a significant amount of money in their HSA each year if they are on the low end of health care spending.

Conversely, many Americans have serious illness, diseases, maintenance drugs or other ongoing medical needs that may drain the HSA account. So there is no way to conclude that HSA accounts will have money in the account each year. However, if there is money remaining at the end of a year, this money will grow tax deferred and never be taxed should the funds be used for qualified medical expenses.

So what can you do to preserve the account balance in your HSA? Take care of yourself. Stop smoking, lose weight, exercise and eat better. All of these things will contribute towards a healthier you which could translate in to a weight to keep more in your HSA. You may even participate in an HSA that rewards you for this things. These rewards programs give incentives to individuals to lose weight, exercise and other things that should help to reduce their risk so that big medical claims do not occur.

In conclusion, it is hard to predict if you really can save money in your HSA. If you have modest medical needs, you probably can save significantly. If you have ongoing medical needs with expensive treatment, you probably cannot save in your HSA but your underlying health plan will protect you from catastrophic expenses. We will explore more details about HSA requirements in a later articles.



TED

Wiley Long asked:


The most common set of diseases facing Americans moving into their 40’s and beyond has been termed “metabolic syndrome”. Metabolic syndrome is a collection of disease symptoms that tend to occur together. These are excess body fat around your waist, high blood pressure, high LDL cholesterol, low HDL cholesterol, elevated triglyceride levels, and high fasting blood sugar.

As more Americans are carrying a high-deductible health plan along with a Health Savings Account, many say they are beginning to pay more attention to their health. Health Savings Accounts allow you to put aside pre-tax money to be used for future medical expenses. Because deposits grow tax-deferred and are not taxed for medical withdrawals, if you fund your account and stay healthy, you could have hundreds of thousands of dollars in your Health Savings Account by the time you retire.

The fundamental metabolic disturbance that seems to be common in almost all people who have metabolic syndrome is insulin resistance. Insulin is a hormone that your body uses to move the carbohydrate that you eat into your cells. If you are insulin resistant, your cells don’t respond well to insulin, and your pancreas has to produce higher amounts in order to keep your blood sugar from going too high. (Once your pancreas is no longer able to keep up with this increased demand, you become diabetic.) If you are insulin sensitive, your body is responding well to smaller amounts of insulin.

Fortunately, metabolic syndrome is almost entirely preventable. Avoid it, and you’ll greatly increase your chances of also avoiding cardiovascular disease, ****** cancer, colon cancer, prostate cancer, stroke, and many other serious conditions. Though all the mechanisms behind the metabolic syndrome have not been worked out, the evidence is strong that combinations of several lifestyle strategies are very effective in preventing this condition.

Exercise

Exercising does more than just burn calories or build muscle. One of the most profound benefits of exercise is its effect on insulin sensitivity. When insulin is released in response to carbohydrate ingestion, glucose transporters come to the surface of the cell in order to carry the glucose into the cell. In muscles and fat cells this transporter is called Glut-4. Exercise itself helps Glut-4 to move through the cell membrane to the surface of your muscle cell, causing these cells to be much more insulin sensitive. Even a single bout of exercise will cause your muscles to respond more effectively to insulin.

Eat Low-Glycemic Foods

The glycemic index is a measure of how quickly a food raises our blood sugar. The high-glycemic carbohydrates in the American diet are primarily the “white foods” (bread, pasta, rice, white potatoes, and sugar). These foods cause many of the changes associated with metabolic syndrome, including lower HDL levels, and higher triglycerides. When a person eats these foods year after year, insulin levels remain chronically high. The result is that eventually the cells become less responsive to the insulin, in turn leading to increased risk of obesity, hypertension, heart disease, diabetes, and premature death. Low-glycemic carbohydrates include most fruits and vegetables. Eating a diet that limits or avoids high-glycemic grains, potatoes, and sugars, and includes more low-glycemic fruits and vegetables, fish, and lean meat can dramatically improve your insulin sensitivity.

Eat the Right Fat

We’ve talked in previous issues about the seemingly miraculous health benefits of fish oil. Fish oil improves insulin sensitivity. Eskimos, who consume high quantities of fish oil, rarely experience diabetes, even though they are often overweight. Though the mechanism by which fish oil works isn’t yet understood, many researchers believe that fish oil makes the cell membrane more “fluid”, enabling the Glut-4 transporters to more easily move to the surface of the cell in response to insulin. Everyone who does not eat fish on a regular basis should consider taking a high-quality fish oil.

Saturated fats and trans-fats, in contrast, make the cell membrane more stiff and inflexible, and also reduce insulin sensitivity. Saturated fats are found primarily in beef, pork, and dairy products and trans-fats are found in processed foods. Saturated fats should be minimized, and trans-fats should ideally be completely eliminated from your diet.

Eat Enough Protein

If you’re avoiding starches, you’ll need to replace those calories with something else - that should be lean protein. Protein satisfies your appetite more than any other macronutrient, it increases metabolism, and it will contribute to weight loss. The best proteins are lean meats like turkey ****** and chicken breast, lean beef, fish, and eggs. And if you are overweight, nothing will improve your insulin sensitivity faster than losing some weight. In fact, weight loss significantly improves all aspects of metabolic syndrome. Eat the right foods, and your body will tend to normalize at the right weight without you having to count calories or starve yourself.

Take Action

Remember, just reading an article has never made anyone healthier. Though there are drugs available to treat some of the symptoms, doctors have no pharmaceutical cure for metabolic syndrome, and almost all individuals become more insulin resistant as they age. It is the lifestyle choices and the actions that you take today to improve your insulin sensitivity that will have a powerful impact on the length and quality of your life.

The characteristic that many people like about Health Savings Accounts (HSAs) is that they reward those who take responsibility for themselves. By putting aside money to pay for future medical expenses, you are being a responsible citizen, and deserve the tax benefits that an HSA offers. Make the same investment in your health, and you’ll not only have the good health to enjoy your retirement, but you’ll also have plenty of money in the bank as well.



MONROE

Richard Day asked:


Interestingly, most people don’t know which factors to look for when they purchase health insurance. They don’t buy insurance very frequently, and they don’t get a good agent.

It is easy, but most people don’t do it. The secret is to get a health insurance plan while you are young and healthy. (Did I hear you groan?) Health Insurance is usually the last place where a young man looks to spend his money - women are much more interested in safety, security and don’t feel invulnerable to the vagaries of the world.

It isn’t too late. Even if you are older now, and didn’t get the plan you need, you can start right now. (You aren’t likely to get heathier as you age. As we age, we tend to put on weight and as we age, more things tend to go worng.)

If you are the correct weight for your height and you don’t use tobacco, you might get a preferred rate on your plan.

So, it sounds pretty easy. Just get the insurance plan early while you are young and healthy!

Another salient point. Once you have obtained a plan, and have a rating as to your health at that time, that insurance company cannot change it later. So, let’s take an example. Let’s say you get a preferred rate on a plan and two weeks later, you are diagnosed with cancer. THE INSURANCE COMPANY CANNOT CHANGE YOUR RATING based on your health, and it cannot increase your premium. You will carry this preferred rate as long as you stay with that carrier.

Your monthly premium will likely go up each year because, of course, you are a year older. Also, the general population in your area of the state will have aged. They also might have a higher incidence of disease, so your premium will increase. Remember, though, the amount of your premium increase will likely be less than someone who didn’t get a preferred rate to start with.

What do you do if you have financial trouble?

I would suggest that if you possibly can, keep your plan in force. If you have a preferential rate, don’t lose it by canceling your health insurance - simply change to a less expensive plan with your current carrier.

You might be “forced” into considering an HSA type plan. This type plan is a high deductible health plan that doesn’t have copays for doctors and drugs. You may feel that you are forced to make this decision. Surprisingly, this is the type plan you should have purchased from the start. HSA plans are not only less expensive per month, but your total out-of-pocket expenses, if you are hospitalized, are typically less than copay type plans. In addition, you have the right, but not the obligation, to open a health savings account at your local bank.

The money that you deposit into this savings account is not subject to taxes. The tax savings that you will experience will reduce your overall expense of the health insurance plan. Don’t underestimate the effect that taxes have. For example, as an individual, you can deposit $3,000 into your HSA account for 2009. The average individual is in the 28% tax bracket. Add in the state’s income tax fee, which is usually in the range of 8%, and you have a savings of $.36 of every dollar you deposit into YOUR account. That is $1,080 or $90 per month!

Let’s take an example: You find that you need to have your gall bladder removed. If you have a copay plan, you typically will have a deductible of $2,500. So, you are likely to think that you will have to pay $2,500 to have this procedure done. No, no, my friend. You still have something you may not know about, or forgot about. It is called coinsurance. Coinsurance means that you co-insure the first $10,000 of the expenses with the insurance company. The most common coinsurance proportion is 70/30. That means that you will pay 30% of the first $10,000 and the insurance company will pay 70% of the first $10,000. In other words, you pay $3,000 and the insurance company pays $7,000 of the first $10,000. After that, the insurance company pays 100% — up to the limit of the policy.

Since a gall bladder operation is at least $10,000, you will have to pay your portion of the coinsurance, 30% or $3,000.

Let’s do the math: You are going to pay $2,500 for the deductible and another $3,000 for the coinsurance. Out-of-pocket expenses in this situation total $5,500. Where do you have that much money put away? It isn’t easy to come up with the money, but you can usually work out a payment plan with the doctors and the hospital. If you don’t have any insurance, this isn’t quite as easy, and they charge you much more for the same procedure.

Now, let’s compare the out of pocket expense for the less expensive HSA plan. Most people who purchase Health Savings Account type plans choose the $2,700 deductible. In addition, they select the 100% coinsurance. That means that the insurance company pays 100% of expenses after the deductible is met. So, if you have that same gall bladder operation, your out-of-pocket expense will be $2,700. That’s it. So you see, your risk is reduced from $5,500 to only $2,700. That is a savings of $2,800 - over 50% savings in the amount YOU have to pay!

There is always a “gold standard” plan in any state. It is the plan that most people purchase. Be wary of insurance companies where the rate is lower than that plan. New insurance companies may be trying to “buy business” in your state. They will get you in with a teaser rate. Next year, you are likely to have a gigantic increase in your premium. Why? Because they don’t have a large enough insured base. If a small number of people get dread diseases, it affects the small population of insured people inordinately.

If this happens to you, you would leave and go to another insurance company. You can leave, only if you are still healthy. If your health has changed for the worse during that year, you are stuck with the expensive insurance company. Next year, the healthy people will leave and go find insurance elsewhere. . . only the sick people stay, because they have to. It is an upward spiral of insurance premiums. The insurance company will have to make up their losses by increasing YOUR premium. You don’t want to get caught in this horrible situation.

In summary:

Find the right health insurance carrier from the start, and stay with it.

* It must be one that has a history of paying claims without a hassle.

* It must be one that is accepted by all the hospitals in your state.

* It needs to be the insurance company with which almost all the doctors participate.

* Make sure that the plan covers you if you were to travel to other states or to other countries.

* Choose a high deductible health plan and open up an HSA (Health Savings Account).

* (Don’t go for the best priced plan from a company not well established in your state.



GARLAND

Wiley Long asked:


Small business owners can now take advantage of Health Reimbursement Arrangements, or HRAs, as a way to cut their health insurance expenses in half. As health insurance premiums continue to grow, fewer small businesses are offering group coverage to their employees. For small businesses with healthy employees, establishing HRAs can be a great way to help their employees obtain permanent, portable individual health insurance at a much lower cost than conventional group coverage.

What is a Health Reimbursement Arrangement?

A Health Reimbursement Arrangement, or HRA, is simply an agreement by an employer to reimburse the employee for their health insurance premiums and other specified medical expenses. This is considered to be a tax-free fringe benefit for the employee.

Because family and individual health insurance plans are underwritten (meaning that the insurance company has the option of excluding a condition or declining an application all together), they are much less expensive than are group plans. In fact, they typically cost less than half as much.

HRAs are also known as Section 105 plans, named after the section in the U.S. Tax Code that governs them.

How Health Reimbursement Arrangements Work

In today’s business climate employees are quick to go elsewhere if they see a better opportunity. Providing good benefits is essential to retaining the best employees, but group health insurance can be too expensive for some small business owners.

An HRA allows you to reimburse your employees for their individual health insurance expenses, taking you out of the middle. Employees carry their own private coverage which is totally portable and not tied down to their employment.

You no longer have to administer the plan, and you no longer have to shop it every year. When employees carry their own private coverage, there are also no COBRA issues to deal with when employment terminates.

When you establish an HRA for your employees, you define what expenses that you will be reimbursing, and how much you will reimburse. For example, you may say that you will reimburse up to $300/month for covered health insurance and medical expenses. If the employee uses less than that, any excess credit accumulates for future disbursement.

When the employee has a qualified medical expense, they would submit it to you for reimbursement, up to the amount of their HRA balance. You then simply cut a check for the amount of the reimbursement. It’s that simple. You count it as a business expense, and your employee pays no taxes on that reimbursement.

Keeping Your Employees Healthy

Most of your employees will incur medical expenses every year, including dental expenses and eye glass expenses. Through an HRA you can reimburse your employees for these expenses with tax-free dollars.

The best businesses are about more than just selling widgets and making money. The more the business cares about the employees and the more the employees care about the business - the more fun we have and the more successful we are. So why not reimburse for preventive benefits like smoking cessation programs, weight loss programs, or even just annual physicals.

The great thing about HRAs is that you are the architect. You get to decide what expenses you will reimburse. You also have the right to exclude part time employees, employees who have worked for you for less than three years, and those under age 25.

How to Establish Your HRAs

When you establish an HRA, all you have to do is furnish a Summary Plan Description to all plan participants. The Summary Plan Description simply describes who is eligible, and the benefit limits that can be reimbursed. For instance, it may list the minimum number of hours they must work, their minimum age, and the number of months they must be employed. It will list the benefit limit for reimbursement of health insurance premiums, out-of-pocket expenses, term life premiums, and possibly other expenses. You must also keep a Plan Document in your files, which documents the same information.

A Better System for Employer and Employee

If you have a small business of healthy employees, an HRA may be a no-brainer. Keep in mind that because your employees will be applying for individual health insurance coverage instead of group coverage, their premiums will be much lower but the plans will each be individually underwritten.

Your employees will each get to choose the insurance plan and deductible that best fits their individual needs. Many are choosing Health Savings Accounts as a way to further reduce their health insurance costs. Once everyone is approved they will have permanent coverage that is not tied down to their employment. And you can get out of the insurance business, for good.



ERNEST

ryan@thesatellitetvguide.com asked:


Health Savings Accounts have become increasingly popular in recent years because they are a great way to save on health insurance and save on your taxes. Here’s an explanation of how Health Savings Accounts work, plus how to get a low cost Health Savings Account plan.

What are Health Savings Accounts?

A Health Savings Account (HSA) is an inexpensive, high-deductible health insurance plan, combined with a tax-deferred savings account. You put money in a savings account to be used toward paying your health insurance deductible (the amount you must pay toward an insurance claim before your insurance will pay).

The money you put into your savings account is tax deductible, and can also be used to pay for health care expenses like prescription drugs, vision care, or dental bills. The money that remains in your account earns interest tax deferred so you don’t have to pay taxes on it.

A high-deductible health plan (also known as a catastrophic health insurance plan) is a health insurance plan whereby you pay for the first few thousand dollars of your medical bills, then your insurance company pays the rest.

You control how to spend your HSA and what type of investments to make with the money in your account. If you withdraw money from your HSA for non-medical reasons you’re subject to paying taxes on it and a 10% penalty.

Where can I get an HSA?

You can sign up for an HSA with your employer, at your bank, at a credit union, or with an insurance company (see link below). For more information on HSAs and how to set up your account, visit the U.S. Treasury Department’s website at: treasury.gov/offices/public-affairs/hsa.

How much do HSAs cost?

You don’t purchase an HSA, you purchase a high deductible health insurance plan and put money into your savings account to pay for your deductible and other medical expenses.

Where can I get cheap high deductible health insurance?

To get cheap high deductible health insurance you need to compare rates from different companies. Fortunately, this is easy thanks to the Internet. You can go online to an insurance comparison website, fill out one simple form, then get rate quotes from a number of insurance companies.

Visit http://www.LowerRateQuotes.com/health-insurance.html or click on the following link to get high deductible health insurance quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.



XAVIER

Raj Kumar asked:


Health Savings Accounts – HSA’s – The Who, What, Where, When and Why on HSA’s.

What is an HSA?

Health Savings Accounts - HSA’s are accounts owned by the individual that allow money to be deposited into a tax-deferred account to pay for current and future medical expenses. They are similar to an MSA-Medical Savings Account, which was the predecessor of the HSA. This money can be deposited by you and/or your employer. You can think of it as an IRA/Flex account combination. An HSA must be tied to a high-deductible health insurance plan (HDHP) which is designed to fit the requirements of an HSA. There are limitations on the amount that can be contributed each year.

Who will it benefit?

HSA’s can be beneficial to individuals, small businesses or any size business that is interested in pursuing a high deductible insurance and lowering their healthcare costs. This can be extremely beneficial if you only use your insurance for accidents or unexpected medical circumstances. It is also beneficial if you are looking for lower rates on your insurance premiums but would like to have an account available where you can accumulate funds to use for your medical expenses while meeting your deductible and co-insurance. It can also be used for expenses not covered by the insurance. There is no deadline on withdrawal of the funds and they can be withdrawn for other than medical expenses penalty free after an individual is eligible for Medicare.

When will they be available?

They are available now. They are hard to find. Most companies that I contacted such as Bank of America and ADP were not familiar with Health Savings Accounts or did not offer this as of yet. They may be offering these accounts in the future. Not all agents are interested in selling the product since the high-deductible insurance premiums do not provide for a high-profit margin. However, I did find several insurance companies that offer these insurance plans. Fortis Insurance was instrumental in getting the HSA legislation passed. Fortis invested a tremendous amount into the HSA program and feels that this product is the wave of the future. Also, World Insurance, IAC, and American Medical Security have designed high deductible plans. All these companies feel that HSA’s are going to be in great demand from the public. Blue Cross/Blue Shield is planning on having a plan available in January 2005. After doing some internet surfing I found an expert on HSA’s at http://www.americanhealthvalue.com/ that provided a wealth of information about HSA’s and even has links to insurance companies that offer the high-deductible medical insurance by state.

Why have an HSA?

Small Businesses - It allows a company to provide insurance without having to pay high premiums. The employer can also contribute to the account of the individual for the difference in the lower premium. There are certain limitations on employer contributions, but they are done completely tax free to the employee and tax deductible to the business.

Individuals - Contributions to the HSA are an above-the-line deduction on the 1040 with certain limitations. Individuals 55 and older can make "catch up" contributions - $500 in 2004. Deductions from the account for qualified medical expenses are tax free and include over-the-counter medications and apply to the person covered, their spouse and dependents even if the spouse or dependent are not covered by the insurance plan. HSA’s can be used to pay for COBRA continuation coverage, health plan coverage while on unemployment, qualified long-term care insurance and some expenses for individuals enrolled in Medicare. HSA’s provide a vehicle to allow savings for future medical expenses and while in the account are invested to allow the account to grow the investment earnings. HSA’s are owned by the individual and controlled by the individual allowing them to decide on contributions, withdrawals and investment options. HSA’s remain with the individual regardless of employment, age, where they live, marital status or future medical coverage. There are no "use it or lose it rules" as there are with FLEX accounts.

Where can I get an HSA account?

American Health Value - http://www.americanhealthvalue.com/ is one company which offers the administration of this account for a nominal fee. At this web site you can learn just about everything there is to learn about HSA’s, about the mechanics of setting up an account, how the account works, how to withdraw and contribute funds, what expenses are eligible and what types of options can be set up. You can click on Insurance Agents by State to find a local agent in your area that sells the high-deductible medical insurance plans that are designed to work with the HSA account. In New Mexico I contacted Judy Anderson, an independent insurance broker in Albuquerque. She has insurance plans that fit the HSA requirements. She can be reached at 1-800-627-2433 or jeander@aol.com for further information on New Mexico insurance plans with an HSA. She advised me on the rating of the insurance companies she would quote which were all "A" rated. It is important to find an insurance company for any insurance you buy that has a good rating since if they go out of business you will need to find another insurance company and if you have too many claims you may have difficulty finding one that will insure you. Happy Insuring!

Coming Soon - Retirement Planning for Small Businesses



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Kavin M Chambers asked:


Year after year healthcare premiums grow at an outstanding pace. For America’s small business owner this is a frightening reality. As millions of entrepreneurs prepare their budget for 2008 they are faced with the uncontrollable growth of healthcare premiums for themselves, their families and even their employees.

In the preverbal darkness of healthcare a glimmer of light has been cast by congress that is spreading like a California wildfire – Health Savings Accounts or HSAs. HSAs have sparked much conversation across the country. The overwhelming consensus is that HSAs can provide a viable option for quality and affordable healthcare. .

So what is a Health Savings Account? .

In short, an HSA is a tax exempt savings account coupled with a qualifying high-deductible health plan (HDHP). Covered individuals and families are able to reduce their federal tax bills by making tax-deductible contributions to their HSA. Many have described this as being similar to making deductible individual retirement account (IRA) contributions. Unlike IRAs, there are no limitations or “phase out” rules for high earners. Additionally, HSAs are transferrable. Meaning that if an HSA holder changes jobs for any reason the account goes with them. This account gains interest over its duration and no penalties are imposed for withdrawal as long as funds are used for qualifying medical expenses. Once an insured turns 65, they can also use their account to pay for things other than medical expenses. If used for other expenses, the amount withdrawn will be taxable as income but will not be subject to any other penalties. .

The benefits for small business owners appear to be substantial. Premiums are reduced by offering the High Deductible Health Plan (HDHP), lower fixed costs since premium and account funding can be determined on an individual basis and reviewed annually. HSAs also create incentives for employees to be involved in their own healthcare decisions. Studies show that when premium dollars are re-allocated to individual accounts, people are more apt to get more involved with the process of getting the biggest bang for their healthcare dollar. Of course, the tax savings connected with HSAs are one of the greatest benefits for small business owners. The contributions an employer makes to an employee’s HSA are made with pre-tax dollars. .

In today’s world of increasing healthcare costs, every business owner is looking for a way to cut costs without cutting benefits. With an HSA program it seems as though there is an option that can accomplish both goals. .

For more detailed information on HSAs, visit www.gatewayinsurancesolutions.com

Gateway Insurance Solutions – Missouri’s Solution for affordable Health and Life Insurance



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