| The HSA stands for Health Savings Account. Simply | | | | approved HSA savings account to invest into, on a |
| put it is an insurance policy paired with a savings | | | | monthly basis. |
| account. Personally, I love them. To me the HSA is a | | | | Say for example that you have an HSA that pays |
| great insurance policy for people of all walks of life. | | | | 100% after the deductible. Your deductible is $2850 for |
| If you a sickly person the HSA is appropriate, because | | | | the year, and you contribute $300 per month into the |
| it reduces your out of pocket costs to your deductible, | | | | savings account. |
| On the other hand, if you are a healthy person that | | | | If you are a sickly individual that sees doctors each |
| rarely sees the doctor, it provides a tax break on your | | | | month, then the deductible will be exhausted rather |
| health insurance costs, and it allows you to build up a | | | | quickly and then for the remainder of the year your |
| savings account to cover any medical costs up to the | | | | health care is then covered at 100%. You continue to |
| deductible amount. | | | | contribute every month into the savings account, and |
| A typical HSA has a deductible that can range from | | | | that gives you a leg up on meeting next year's |
| $1100.00 up to $10,000.00 depending on the company | | | | deductible. What is the benefit to this? There are |
| that you choose and your personal preference on | | | | many; small deductible that is easily achieved and paid |
| premiums and deductibles. Typically after you meet | | | | for using the savings account, a generous tax break at |
| the deductible, the HSA then covers your health care | | | | the end of the year, should something else happen |
| costs at 100%. There are exceptions to this, in that, | | | | your have 100% coverage, and you are still building the |
| some companies offer the HSA with 80% coverage | | | | amount in the savings account so that you will have |
| after the deductible is met. | | | | the deductible covered with less out of pocket than |
| That is the gist of the HSA. Complicated? No. It is very | | | | the year previous. |
| simple. Now there are additional benefits for the HSA | | | | If you are healthy and have no medical expenses |
| that are not commonly in your traditional 80/20 plans. | | | | throughout the year, then you reap the benefit of |
| The additional benefits are in the form of your money. | | | | accumulating $3600.00 into the savings account for |
| You contribute in a HSA to a savings account that | | | | use on future claims. This plan is a huge winner on all |
| you set up concurrently. You can choose any | | | | accounts. |