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With the number of those enrolling in Health Savings Accounts on the rise, you might be wondering what makes this type of insurance policy so appealing. There are a number of benefits that make Health Savings Accounts a viable option for both individuals and families, offering greater flexibility than traditional insurance policies and less out of pocket cost. Listed below you will fine a general outline of Health Savings Accounts and the key points and features.

• You must be enrolled in a High Deductible Insurance Policy in order to apply for a Health Savings Account. A key factor in High Deductible Insurance Policies is that overall your premiums are going to be lower allowing for lower monthly out of pocket expenses.

• Contributions made to your health savings Account are tax-deductible as well as the money earning interest in your account.

• Tax-free withdrawals may be made for qualified medical expenses. Should funds within your Health Savings Account be used toward non-qualified medical expenses taxes will apply. However, you are allowed to use the money in your account however you like.

• Unused funds and interest earned are carried over, without limit, from year to year.

• You own the HSA and it is yours to keep - even when you change plans or retire. One stipulation of Health Savings Accounts is that you can’t currently be enrolled in Medicare. However, if you enroll after you have participated in a Health Savings Account you can use the funds accrued accordingly.    

• Funds placed your Health Savings Account can be used to assist in medical expenses for others.

• There are no in-network restrictions from which you may seek care. There are also very few limitations on the type of treatment you can pay for out of your Health Savings Account.

This is a very simple breakdown of the benefits you can receive when enrolling in a Health Savings Account. The options and benefits are many.