Health Savings Accounts Cover a Lot!
Today the news for health insurance consumers seems to all be the same: insurance premiums are increasing while coverage is decreasing.
In this tough economic climate, isn't it good to know that with a Health Saving Account you can enjoy coverage for a wide variety of qualified medical expenses - even if the expense is not covered by your High Deductible Health Plan.
Perhaps the best example is that most health insurance does not cover the cost of over-the-counter medicines, but Health Savings Accounts can.
According to WikiPedia, a health savings account (HSA), is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP).
The funds contributed to the account are not subject to federal income tax at the time of deposit.
Unlike a flexible spending account (FSA), funds roll over and accumulate year over year if not spent.
HSAs are owned by the individual, which differentiates them from the company-owned Health Reimbursement Arrangement (HRA) that is an alternate tax-deductible source of funds paired with HDHPs.
Funds may be used to pay for qualified medical expenses at any time without federal tax liability.
Withdrawals for non-medical expenses are treated very similarly to those in an IRA in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier.
These accounts are a component of consumer driven health care.
According to the IRS, "qualified medical expenses" are defined as: ...
those expenses that would generally qualify for the medical and dental expenses deduction.
However, even though non-prescription medicines (other than insulin) do not qualify for the medical and dental expenses deduction, they do qualify as expenses for HSA purposes.
What are some examples of things a Health Saving Account can cover that your current policy might not? The list includes hundreds of items - some of which may surprise you like: o Arch Supports o A water Fluoridation unit o Hydrotherapy o Lead paint removal from your home o Metabolism tests o Telephone or TV equipment to assist the hard of hearing Health Savings Accounts provide individual's coverage for the items that meet their specific health situation and needs.
From this list alone, it is evident that HSA's provide individual's greater control over their health related expenses.
In this tough economic climate, isn't it good to know that with a Health Saving Account you can enjoy coverage for a wide variety of qualified medical expenses - even if the expense is not covered by your High Deductible Health Plan.
Perhaps the best example is that most health insurance does not cover the cost of over-the-counter medicines, but Health Savings Accounts can.
According to WikiPedia, a health savings account (HSA), is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP).
The funds contributed to the account are not subject to federal income tax at the time of deposit.
Unlike a flexible spending account (FSA), funds roll over and accumulate year over year if not spent.
HSAs are owned by the individual, which differentiates them from the company-owned Health Reimbursement Arrangement (HRA) that is an alternate tax-deductible source of funds paired with HDHPs.
Funds may be used to pay for qualified medical expenses at any time without federal tax liability.
Withdrawals for non-medical expenses are treated very similarly to those in an IRA in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier.
These accounts are a component of consumer driven health care.
According to the IRS, "qualified medical expenses" are defined as: ...
those expenses that would generally qualify for the medical and dental expenses deduction.
However, even though non-prescription medicines (other than insulin) do not qualify for the medical and dental expenses deduction, they do qualify as expenses for HSA purposes.
What are some examples of things a Health Saving Account can cover that your current policy might not? The list includes hundreds of items - some of which may surprise you like: o Arch Supports o A water Fluoridation unit o Hydrotherapy o Lead paint removal from your home o Metabolism tests o Telephone or TV equipment to assist the hard of hearing Health Savings Accounts provide individual's coverage for the items that meet their specific health situation and needs.
From this list alone, it is evident that HSA's provide individual's greater control over their health related expenses.