• Health Insurance in an HSA
• Health Savings Account for Medical Expenses
• How HSA Plans Work
• Quoting Information

Health Savings Accounts or HSA’s as they are commonly referred to is a concept of Medical Insurance and Tax Savings. Basically, an HSA has two parts:

Health Insurance - Which is a Qualified High Deductible Health Plan (QHDHP)

When we say “qualified”, we mean the health plan meets the IRS criteria to be used in an HSA. It has a minimum deductible amount and a maximum out-of-pocket amount.

                                                                          NOTE: These qualifications change each year based on IRS regulations.

HSA QHDHP’s cannot offer any prescription drug overage, office co-pays or any benefits prior to the individual or family deductible being met in a calendar year. This means you pay everything up until you meet your deductible. Prescriptions and co-pays, if included in the policy, are covered after the deductible is met.

NOTE: Some plans do offer “preventative care” benefits not subject to the deductible.

Most carriers offer plans with $1,750 to $10,000 deductibles for individuals and $2,500 to $11,900 for families. Also, 100%, 80%, and 70% co-insurance levels (after the deductible) are available.

Health Savings Account - This is the second part of the HSA plan concept.

You may set up a savings account for medical expenses or other qualified expenses. This account must be set up with a “Qualified Financial Institution” which has been IRS approved to offer these accounts.

You may make a lump sum deposit or monthly deposits into your account on a “pre-tax” basis. In other words, any monies you deposit are tax deductible. The IRS has set limits as to how much you may contribute each year.

NOTES:  

1. These limits change each year based on IRS guidelines.
2. The catch up contribution limit (for individuals who are age 55 and older) is an additional $1,000

You will receive either a debit card or checks from your financial institution to use with your HSA plan. Any monies not used in a given year roll over to the next year.

When you go to a doctor, assuming you use an “in-network” provider, you will be charged the negotiated fee for the services provided, not the provider’s full retail charge.

You pay for the services provided using your debit card or a check from your HSA account. The charges, if covered under your medical plan, are applied to your calendar year deductible.

In 2011, the penalty on taxable, non-medical distributions is 20%.

NOTE: For a specific listing, see Publication 502 – Medical and Dental Expenses at http://www.irs.gov/ 

The US Treasury has additional information regarding HSA plans on their website.

While the HSA may seem a little complicated or foreign to you at first; with the proper education, it is a very viable program for many of us. To see how an HSA may fit yout budget and the benefit choices available, please click here. We encourage you to contact us in order for us to help answer your questions and concerns and so that we can assist you with finding the best plan for you. Please call us at 770-935-0330 or toll-free at 1-877-935-0330.

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