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7 Things You Should Know About Health Savings Account Plans
Posted by | Posted in Health | Posted on 19-11-2010
Health savings accounts (HSAs) are wildly popular. Since their introduction in 2004, approximately 2.5 million Americans have enrolled in these so-called consumer-driven health plans. But, alas, HSA plans are not for everyone.
Here are some pointers to help you consider whether an HSA will benefit you and your family.
1. An HSA plan can cut healthcare costs by an average of 40% for many people.
Nevertheless, some people will not realize any net savings. Those most likely to realize significant savings are people who pay all of their own health insurance premiums, such as the self-employed, who are relatively healthy with few medical expenses.
2. Health savings account plans restore freedom of choice.
An HSA plan puts individual consumers back in control of their own health care. This also means that each individual must be more responsible for his or her own health care decisions. This approach of self-reliance is not always popular with or appropriate for everyone, especially those who have become comfortable with HMO-type “co-pay” plans.
3. Health savings accounts reduce income taxes.
Every dollar contributed into your HSA account is deducted from your taxable income in the same manner as contributions into a traditional IRA account–regardless of whether you spend it or just save it. Interest and investment earnings in a HSA accumulate tax-deferred, just like a traditional IRA. Unlike an IRA, withdrawals are tax-FREE when used to pay qualifying medical expenses. In many situations, new account holders are able to almost fully fund their HSA with money saved on premiums from a prior, higher priced plan. By stashing all or most of those savings into an HSA, the account holder realizes instant, additional savings in the form of reduced taxes.
4. You must have a properly qualified high health insurance policy in place first before
you can open a health savings account. One of the biggest misconceptions about HSA plans is that any insurance policy with a high deductible will qualify the policyholder to establish an HSA account. IRS regulations, however, are quite specific. Not just any policy with a so-called “high deductible” will suffice. It is important to be certain that you are insured under a properly qualified policy. Your best bet is to work with a qualified and duly licensed health insurance broker who is experienced in marketing properly qualified HSA plans.
5. You must be insurable in order to qualify for the HSA-qualified health insurance policy.
Because most people do not have a properly qualified high deductible insurance policy, they will need to switch insurance plans in order to become HSA-eligible. Unless coverage is being offered under small group reform laws (generally groups with 2-49 employees), the new high deductible policy will be individually underwritten by an insurance company. This means that some “pre-existing” conditions may not be fully covered. Alternatively, some companies may opt to cover certain “pre-existing” conditions in exchange for slightly higher premiums. Unfortunately, some health conditions simply render an individual uninsurable (examples: diabetes, chron’s disease, heart attack, etc.). Underwriting requirements vary by state, which is another reason to rely on an experienced health plan broker.
You should not switch to a HSA plan when the management of existing medical expenses is more important than saving up-front medical insurance premiums. Do not change health plans: in the middle of ongoing medical treatments; after a major health issue has been diagnosed; or if any family member is pregnant.
Generally, it is relatively hassle-free to qualify, i.e. no medical exams, etc. Most insurance companies offering HSA coverage will issue based on your application answers, perhaps accompanied by a follow-up telephone interview. In some cases, medical records may be requested, and companies always reserve the right to order a paramed exam.
6. Although HSA insurance premiums are low, they are not always as low as you might expect.
This happens for one main reason. Simply stated, the underlying insurance policy is just that—a health insurance policy. Although it has a “high” deductible, as required by law, the insurance company still must compensate for the risk it is assuming over the deductible amount, which it does by charging premiums. Many companies offer policies with “one deductible” that all family members contribute toward. With those plans, it is not uncommon for premiums for a 5000 family deductible with 100% coverage after the deductible to be comparable to a 2500 “per person” deductible plan with 80/20 coverage after the deductible.
Lower premiums represent just one element of the lower net cost achieved with an HSA plan. The low net cost of an HSA plan is achieved after factoring in the benefits of lower taxes, made possible by the tax-deductible contribution to the HSA account. Thus, if obtaining the lowest possible gross premium is your main concern, you may wish to consider a high deductible, non-HSA policy, especially if you do not see the benefit to contributing to a tax-deductible savings account.
7. An HSA offers your best chance to keep a lid on health insurance rate increases.
Make no mistake-you will have rate increases with your HSA insurance policy. Because an HSA qualified policy is still a health insurance policy at heart, there is no logical reason to presuppose that an HSA policy would be immune to rate increases required by an insurer to keep paying claims and stay in business. But what you can expect is that the actual dollar amount of any future rate increases will be substantially lower compared to traditional health insurance plans (regular PPO and HMO plans). This is true because insurers base increases on percentages, and the same percentage of a lower base premium results in a lower dollar increase. It’s not a perfect solution-but it is the most cost-efficient solution for many qualified people.
Watch the video related to health
This Saturday is the African American Men’s Health Forum at Norfolk State University, sponsored by the American Cancer Society. There will be information and screenings on all kinds of male health issues, and prostate cancer will be central to the discussion. On the next Another View we re-visit the topic of prostate cancer and find out the latest in detection and treatment. Our guests: Terrance Afer-Anderson, PR Chair for the Health Forum, and recently diagnosed with prostate cancer; Charlie Hill, President of the Hampton Roads Prostate Health Forum; Dr. Mark Fleming, Oncologist with Virginia Oncology Associates; and Ed Sykes, Chairman of the African American Men’s Health Forum. Plus, using the game of chess to steer young men in the right direction.
Help answer the question about health
How do you refill your health with a minor health potion on Diablo 2?Like click the red potion and then what?
Cause i got plenty of health potion but don't know how to use it to refill my health.
Sorry, i just started playing Diablo.
Yes hypertension may lead to strokes.Jogging is one of the good cardiovascular exercise.
http://www.everyonebenefits.com/12851363 this is a great ste for someone looking for low cost health programs.
simple solution if it’s passed Stop paying taxes And get rid of Congress and senate in nov!
The Pledge of Allegiance
I Pledge Allegiance to the flag of the United States of America and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all.
Yes. If you have unlimited resources as an American you have the best health care in the world. If you are an ordinary citizen you simply don't. Even the average health care plan generally does not cover the basics like European systems do. All too often Americans find out just how under insured they are when sickness strikes.
http://www.commonwealthfund.org/Content/Publications/In-the-Literature/2008/Jun/How-Many-Are-Underinsured–Trends-Among-U-S–Adults–2003-and-2007.aspx
That's important because when those people are lucky enough to stay healthy they will never see a problem whatsoever just as their fellow countrymen were just fine with their coverage before tradgedy happened.
http://www.click2houston.com/investigates/12538706/detail.html
http://www.guaranteedhealthcare.org/your_story/my-insurance-company-denied-my-doctors-prescription
http://www.rhonawaxman.com/blog/insurance-company-medical-exam-denied-me-surgery.html
This is the same thing as with the standard of living. Americans have a higher income on average than Americans but more detailed data shows it's the top 1 percent income earners that's responsible for the whole difference. Middle clas an poor Americans are much worse of than their European counterparts
That's ultimately what it is about
yes………………………..!
A. Public health looks at everyone from all over. We (I'm an epidemiologist) are concerned with things that may be coming down the pike and hit all of us (like bird flu, etc.). Community health mostly involves doctors, nurses, and other health care professionals that tailor interventions to a particular community's needs, and they generally don't plan out for "the bigger picture", although they do a heck a job in their locales, since they know it better.
I am Teddy. Once you read this you cannot get out. Finish reading this until it is done! As I said, I am Teddy. I am 7 years old and have no eyes and blood all over my face. I am dead. If you don’t post this in 12 threads, I will come to ur house at midnight and hide under ur bed. When ur asleep I’ll kill you.
One free start is to look in the mirror and see that you are one big fat load…should it surprise you if you have diabetes or high blood pressure? You don’t need to go to a Dr for that…just a pair of eyes. Why should I pay for your laziness and crappy eating habits?
The Robert Woods Johnson Foundation is a research think tank. They have all kinds of references to interesting research around health care and health reform. With a little digging, you may be able to contact some of the researchers.
WebMD is another useful source for anything and everything health care.
Centers for disease control and prevention, National Center for Health Statistics: http://www.cdc.gov/nchs/
National Vital statistics system: http://www.cdc.gov/nchs/nvss
Overhauling the nation’s health care system is a bad idea… SAY NO!
As for the American public, the reality that Obama is not up to the job seems to finally be setting-in; the poll numbers are now headed steadily south- is he already facing his Waterloo on this legislation?
Barack Obama will never say to your face what he actually plans to do. Everything’s rolled-out in a Trojan horse. Theyll be no private insurance industry left after five years. Why should we give Government medical insurance to 15 million illegals?
3 out of 4 liberals agree: paying for illegal aliens healthcare is the shiznet.
Usually you have to have a BMI (Body Mass Index) of 40 or more to qualify for gastric bypass. If you have a BMI of over 35, sometimes you can qualify if you have significant co-morbidities such as diabetes or sleep apnea. First and foremost, "they" look at how morbid obesity is affecting you, however, your family history may be taken into account, if close relatives are morbidly obese and have health problems relating to obesity.
i htought the main reason of living in a society was to help each other out, am i wrong?
Well, if she's 40 and perfectly healthy, it's going to cost her about $500 a month to have a low/no deductible plan that covers checkups.
You BUY it on a month to month basis. If you want low monthly payments, you have to cut the coverage – like take a $10,000 deductible. Or higher. That would cut payments down to maybe $200 a month or less.
The older she is, the less healthy she is, the more it costs.
Your best bet, is to find a local, independent agent, who can help you balance cost with coverage.
The Obama plan hopes to offer a public option, it’s called competition, the thing Republicans claim to support. It’s what you have in a truly free market, you have choices, and if the people choose the public option the private Insurance companies will have to lower their prices to compete, or they go out of business. That’s called a free market: what part of that do you not understand?
Eric Cantor pampered GOP Crime Family Princess sucking government healthcare benifits from taxpayer premeiums. But this sniveling filthy Likud-OPEC-GOP-POS says that Amercians can’t have “dangerous” government run healthcare benefits, like those we buy for his soft pampered GOP criminal ass. All GOP criminals and their corporate owned DEM insect facilitators need waterboarding for months then to be hunted as his crime family cheers for abortion doctors.