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Flexibility And
Individual Discretion
Health Savings Accounts offers an alternative to
traditional health insurance. Designed to help individuals to pay for
current health expenses and save for future qualified medical and
retiree health expenses on a tax-free basis. Health Savings Accounts
offer control over health care decisions and treatments. Health Savings
Accounts provide individuals and families with greater financial control
over their specific health care needs. As well as the ability to save
for future health care incidents.
Health Savings Accounts contribute to medical
expenses that are not typically covered by conventional insurance
policies, thus allowing individuals and families the means to explore
alternative therapy and other prevention treatments. Traditional
insurance policies structure treatment through in-network referrals and
care. Health Savings Accounts can allow you to seek treatment both in
and out of network. A Health Savings Account is different from that of
more traditional flexible spending account, in that the funds that are
deposited into a Health Savings Account will roll over into the next
fiscal year. A Health Savings Account can accrue non-taxable interest
and can be used for other non health care relation incidents.
Two fold, health savings accounts act in addition
to high deductible health plans. Health Savings Accounts can be used to
cover deductible costs, miscellanies health care fees, educational
programs, and many other treatment and prevention methods. Specifically,
Health Savings Account is a tax-favored savings account. Health Savings
Accounts allow you to deposit tax-deductible funds into an account that
can be used to cover medical costs. One of the key components of this
type of account is that the individual is the primary responsible party.
The patient has control over their Health Savings Account and what is
deemed necessary for medical treatment. Qualified medical expenses
include, but are not limited to: Health insurance deductibles,
co-payments for medical services, prescriptions, or products, over the
counter drugs, long term care insurance, and health insurance premiums
during any period of unemployment.
Is a Health Savings Account right for you? To
determine if a Health Savings Account is right for you and your family,
you will need to perform a few simple calculations. Review past year
health spending. Determine what you have spent in and out of pocket in
health care cost. Estimate what your out of pocket costs would be if you
had had HSA in previous years. Lastly, estimate your use of prescription
drugs and how they will impact the dollars in your Health Savings
Account. Lastly, determine if you would have had any excess funds and
remember that any unused funds will roll over for future use. When
looking at the above calculations and they indicate an overall positive
financial impact, you are likely to benefit from a Health Savings
Account.
While not
everyone is eligible for Health Savings Accounts including those on
Medicare, those without a high deductible health plan, and those listed
as dependents. Investing in a Health Savings Account can be a great
option for those seeking to be active participants in their own health
care needs.
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