Wisconsin Gives Health Savings Accounts State Tax Deduction Status
Posted on May 29th, 2011
Health Savings Accounts are attractive because contributions to these accounts are tax deductible on federal income tax returns. The choice of making Health Savings Account (HSA) deposits deductible on state tax forms is left up to each state. Almost all states have chosen to follow the federal example on this and Wisconsin is the latest state to adopt that legislation beginning with the 2011 tax year.
Individual coverage health plans that can be combined with an HSA have a deductible of at least $1,200. Family HSA plans have deductibles starting at $2,400. These high-deductible plans usually cost much less than co-pay plans, which don’t require policyholders to meet a deductible.
Once Health Savings Accounts are funded, they can be used to cover the deductible.
Tags: Health Savings, Health Savings Accounts, Savings Accounts, Tax
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Health Savings Accounts Make Their Case
Posted on May 14th, 2011
Proponents say that only Health Savings Accounts separate health care from insurance. For example, say you have family coverage through work that costs the employer $12,000 annually. If your employer pays for all the premiums and you have $25 co-pays to see a doctor, your expense is limited.
In contrast, if your employer still spends $12,000 a year, but puts $5,000 of it into a Health Savings Account (HSA) in your name, $5,000 of your health care benefit is now legally yours. Instead of a co-pay plan, your employer must buy a High-deductible Health Plan that’s qualified to work with an HSA.
Preventive care is 100-percent covered, but you’ll have to pay for other services until the deductible has been met.
Tags: Accounts, Health Savings, Health Savings Accounts, Savings Accounts
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Health Savings Accounts Help You Control Your Health Care Costs
Posted on April 14th, 2011
With Health Savings Accounts, people can become more proactive when it comes to making their own health care choices. An HSA plan allows you to contribute money to a savings account that earns tax-free interest. Then, you can tap that money for future medical expenses and the withdrawals are also tax-free as long as you buy a type of health care that is qualified to work with an HSA. That list is pretty long and includes many services that traditional health insurance doesn’t cover, like dental care.
Before you can start an HSA, you must have a high-deductible health plan and not just any plan will do. Be sure to get a plan that is qualified to be combined with an HSA.
Tags: Care, Health Care, Health Savings Accounts, Savings Accounts
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Health Savings Accounts Are A Great Option For Employers
Posted on April 5th, 2011
With the advent of Health Savings Accounts, high-deductible health plans became more attractive to employees. Even if they have to pay for high out-of-the-pocket expenses for medical bills before the insurance coverage starts when they meet the deductible, there are advantages. Health Savings Accounts allow consumers to save in order to pay for future qualified medical costs with tax-free earnings and tax-free withdrawals.
Small employers are given two HSA plan options to offer employees. A small-group HSA-qualified plan may help with underwriting concerns for employees who have pre-existing health conditions.
Tags: Accounts, Health Savings, Health Savings Accounts, Savings Accounts
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Learn Facts About Health Savings Accounts That You Should Know
Posted on April 1st, 2011
Health Savings Accounts have been gaining popularity with consumers ever since they started way back in 2004. Once you have a high-deductible health plan (HDHP) that is qualified to work with a Health Savings Account (HSA), you are eligible to open an HSA. HSA plans allow you to deposit tax-deductible funds into an HSA that you can use to cover qualified medical costs until your deductible has been met. If you were not able to use the contributions for that year, the money would be carried over to the next year and it would continue to grow with tax-free earnings.
HSA plans allow individuals to be more responsible when it comes to health care decisions.
Tags: Accounts, Health Savings, Health Savings Accounts, Savings Accounts
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Health Savings Accounts Are The New Retirement Accounts
Posted on March 26th, 2011
Health savings accounts are becoming the IRA of choice with escalating health care costs. These special accounts work with high-deductible health insurance plans to let you save with tax-free interest to pay for health care and take tax deductions for medical expenses.
Health savings accounts keep the tax-free interest IRA benefit and add tax deductions for contributions to the health savings account (HSA).
If you don’t need HSA funds for health care, you can save the money for when you retire. Funds in this type of savings account roll over year after year. Some financial experts recommend to contribute the maximum allowed to an HSA before starting an IRA or Roth because you can withdraw money tax-free from an HSA to pay for qualified health care.
Tags: Accounts, Health Savings, Health Savings Accounts, Savings Accounts
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Health Savings Accounts Continue To Grow In Popularity
Posted on March 18th, 2011
Health Savings Accounts and Health Reimbursement Arrangements have become increasingly popular, according to a new Employee Benefit Research Institute (EBRI) report. There’s been an increase both in the number of these HSA plans and the balances within the Health Savings Accounts.
In 2010, the EBRI reported 5.7 million Health Savings Accounts holding a combined total of $7.7 billion. In 2006, there was just $835 million held in 1.2 million Health Savings Accounts and balances only averaged $696.
To take advantage of a Health Savings Account (HSA), you must buy one of the high-deductible health insurance plans that are qualified to be combined with an HSA.
Tags: Accounts, Health Savings, Health Savings Accounts, Savings Accounts
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