Get A Health Savings Account Before It’s Too Late
Posted on May 21st, 2011
Healthy as we may seem today, we never know when illness can strike. Would switching from a full-coverage plan to a high-deductible health plan with a health savings account (HSA) be a wise decision to make? What if you need to meet a high deductible? You may be surprised to find that when you add up how much you can save on premiums and by reducing your taxes, it could actually cost less even if you do have to pay for health care until a high deductible has been met.
If you have good health and do not need much medical care, a high-deductible insurance plan that has low premiums can be a “no brainer.” If you are in a high tax category, an HSA or Health Savings Account can definitely help lower your federal income tax and state income tax in almost all states.
Tags: Account, Health Savings, Health Savings Account, Savings Account
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What Do Health Savings Account Plans Mean For Preventive Care?
Posted on May 11th, 2011
The American Journal of Managed Care published the largest assessment of Health Savings Account plans to date. The new RAND Corporation study showed that Health Savings Account plans significantly cut health spending and motivated patients to cut back on preventive health care.
With more than 800,000 families around the country participating, researchers found that shifting to Health Savings Account plans with deductibles of at least $1,000 correlated with an average drop in health spending of 14 percent compared to families who had health plans with lower deductibles.
At the same time, families that moved to high-deductible plans significantly cut back on preventive health care, included critically needed services.
Tags: Account Plans, Care, Savings Account, Savings Account Plans
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Is A Health Savings Account The Same As A 501(c)3?
Posted on May 4th, 2011
If you are wondering if Health Savings Accounts are the same as 501(c)3 corporations, then the answer is no. A 501(c)3 corporation is a tax-exempt organization formed for the purpose of educational or charitable activities. Health Savings Accounts, on the other hand, are simply a tax-advantaged way of saving money when it comes to paying for future medical bills.
A Health Savings Account basically helps reduce your income taxes – both federal and almost always state taxes. Contributions placed in your HSA are tax-deferred and withdrawals are tax-free when used to pay for qualified medical expenses. A 20-percent penalty may apply if you use the money for other purposes.
Tags: Health Savings, Health Savings Account, Same, Savings Account
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Health Savings Account Tax Tip
Posted on April 30th, 2011
Although Health Savings Accounts have been around since 2004, many people are still missing out on the tax savings they offer because they don’t understand how a Health Savings Account (HSA) works.
HSA Plans are really simple. They’re so easy to use that you don’t even need to itemize deductions to take advantage of their savings when you file your taxes.
Kathy Pickering of H&R Block says, “You put your money into the Health Savings Account tax free, and then it grows tax free.
Tags: Health Savings, Health Savings Account, Savings Account, Tax
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A Health Savings Account Acts Like A Medical IRA
Posted on April 19th, 2011
With an IRA, you can’t get to your money until you’re 65, but with a Health Savings Account (HSA), you can use those funds for qualified medical expenses whenever needed and still earn tax-free interest on whatever is left until you turn 65. One of the best things about having an HSA is that your funds roll over at yearend. You never lose the balance like you do with a Flexible Spending Account.
However, there are some limitations with an HSA. Health Savings Accounts have a maximum yearly contribution limit of $3,050 for individual coverage and $6,150 for family coverage. No contribution is every required, but you may make an additional $1,000 contribution each year if your are at least 55 years old.
Tags: Health Savings, Health Savings Account, Ira, Savings Account
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Considerable Increase in Health Savings Account Clients Reported by Fidelity Investments
Posted on April 10th, 2011
Fidelity Investments® recently reported that there was a very significant 52% increase in clients getting Health Savings Accounts last year. This increase was attributed to clients taking advantage of the tax deferred medical account service being offered by having an HSA plan. According to William Applegate, the vice president of HSA products of Fidelity Investments, consumers are utilizing HSA plans to manage the continued increase of medical costs.
Analysis showed that there are different contribution rates as well as spending behaviors noted from Fidelity’s Health Savings Account participants. Nearly half of them had at least $2,500 as their contribution and 17% had more than $5,000. Th
Tags: Fidelity, Fidelity Investments, Health Savings Account, Savings Account
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The Changing Health Savings Account Landscape
Posted on February 6th, 2011
President Obama acknowledged health savings accounts by including them as one of his policy proposals. Health savings account (HSA) plans are associated with the lower premiums of high-deductible health insurance policies.
The attraction of low premiums is integral to the increase of employers switching to HSA plans for their employees. According to Tower Watson and the National Business Group on Health’s 2010 survey, 83 percent of businesses have already or are planning to change the health care they offer.
Employers are fighting the sky-rocketing cost of health care in the U.S., which is growing by approximately double the rate of inflation.
Tags: Account, Health Savings, Health Savings Account, Savings Account
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