| The need for reduced health care cost brought about | | | | HSA's were originally created as a tax deductible |
| the formation of Health Saving Accounts about four | | | | medical insurance program with the self employed |
| and a half years ago and their use has grown in use | | | | consumers in mind, but were quickly recognized as a |
| by American consumers exponentially. Most | | | | viable solution to better manage health care cost for all |
| consumers will agree that health insurance is too | | | | Americans. Some advocates believe that HSA's are |
| expensive especially if you have a family to cover. | | | | geared primarily toward wealthy self employed |
| Deciding what policy makes the most sense can be | | | | families in good health who need a low cost plan for |
| confusing regarding co-pays and deductibles, and | | | | any major medical expenses. Clearly it makes more |
| features because the ones with the most features | | | | sense for somewhat healthy individuals to benefit |
| and lowest deductibles cost the most so you are left | | | | more from the cash accumulation than someone who |
| with the dilemma of determining how much will you | | | | actively is tapping into their insurance because of |
| actually use if you pay for all the bells and whistles. | | | | health issues. The consumer market says these plans |
| This is where the Health Saving Account can make it | | | | are growing in favor within only a few years over 3 |
| possible to get great coverage with a reduced | | | | million have signed up for HSA plans and that number |
| premium and have a reserve expense account for | | | | is expected to be over 30 million by 2010. Determining |
| when a major medical expense does occur. | | | | if an HSA is right for you will require you to consider |
| Why Use A Health Savings Account? | | | | your current health insurance cost and how you feel |
| Most consumers choose health plans with low to | | | | about covering the smaller healthcare expenses in |
| medium deductibles and co-pays for doctor visits and | | | | exchange for a lower premium. The savings in |
| prescription drugs to defray the cash outlay for health | | | | premium can be substantial and once you have fund |
| related expenses. Deductibles are the amount you the | | | | accumulation you will have enough to cover doctor |
| consumer pay before your insurance kicks in to cover | | | | visits co-pays prescription and deductibles. The |
| the difference. While these traditional plans can ease | | | | benefits of the HSA are twofold; Lower overall |
| the pinch on the pocketbook at the initial appointment | | | | insurance premiums and a self managed tax |
| or at the pharmacy, you actually pay for these | | | | deductible medical expense account. One of the |
| features in the form of a higher premiums. | | | | greatest uses in our current economy with the |
| The concept behind Health Savings Accounts (HSA's) | | | | suffering employment market would be the ability to |
| is that you choose a plan with a high deductible | | | | use a HSA account to fund a short term medical plan |
| because plans with higher deductibles have much | | | | for a consumer or family income earner who has lost |
| lower monthly premiums. The savings in premium for | | | | their employer sponsored health insurance plan. |
| the high deductible plan is then placed into a HSA | | | | How Do I Enroll in an Health Savings Account |
| account owned by you. The contributions to the HSA | | | | Program? |
| are 100% tax deductible from your income up to the | | | | Most major health insurers such as Assurant, United |
| legal limits and the money accumulates tax deferred | | | | Health Group Golden Rule and Aetna provide Health |
| sort of like an IRA for health care. As long as the | | | | Savings Accounts right alongside their traditional |
| money is used for any qualified health care cost then it | | | | medical insurance programs. Agent websites with |
| is also tax free. The best part is the contributions are | | | | carrier links will actually spreadsheet the different plans |
| yours to keep and they continue to accumulate | | | | side by side for you to compare. Agents also can |
| interest. If you change jobs or become self employed | | | | provide you a personalized comparison to show how |
| the HSA account goes with you, and unlike Flexible | | | | you might save by making the switch from traditional |
| Spending Accounts that have the "use it or lose it | | | | plan to an HSA plan. Many of the carriers have |
| provision" these accounts do not forfeit your | | | | already established bank accounts with debit cards |
| contributions. | | | | allowing you to sign up for the programs all at the |
| Is A Health Savings Account Right For Me? | | | | same time. |