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Rundown
Health Savings Accounts continue to
grow in popularity among the uninsured, the underinsured, and the
unhappily insured. Truly a consumer based health insurance plan, Health
Savings Accounts put the policyholders in the drivers’ seat by allowing
the policyholder the opportunity to guide their health care needs. It is
determined by the individual the type of treatment they receive, whom
they will receive care from, and how the money placed in the Health
Savings Account will be used. The middle man is taken out and each
individual is free to choose his or her own health care path.
Traditional health insurance plans set out strict guidelines for its
policyholders, leaving a number of hoops to be jumped through when
attempting to receive treatment. Should a patient who is receive
insurance coverage from a traditional insurance plan decide he or she
would like to see a specialist, one must first receive a referral and
insurance authorization in order to see the specialist. Those enrolled
in a Health Savings Account can immediately schedule an appointment with
a specialist of any field, in any network, in any state or country. The
benefits provided through a Health Savings Account are many.
The logistics of a Health Savings
Account are as follows:
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In order to participate in a
Health Savings Account you must first enroll in a High Deductible
Insurance Policy. Any High Deductible Insurance Policy can qualify
as long as it meets the IRS requirements.
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All contributions made either
by yourself or your employers are done so on a pre-tax basis.
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Unlike flexible spending
accounts, the money placed in your Health Savings Account can be
rolled over year after year. Should you have money left in your
Health Savings Account at year’s end, the money will roll over for
you to use in the upcoming year.
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If you are enrolling in a
Health Savings Account as a single and have a loved one fall ill,
you are able to use the money in your Health Savings Account to
contribute towards their medical expenses.
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Funds placed in you Health
Savings Account can be used to cover qualified medical expenses.
Should you use the money for nonmedical expense you are subject to a
10% penalty.
If you are
currently enrolled are actively participating in Medicare you are unable
to enroll in a Health Savings Account. If you have enrolled in a Health
Savings Account prior to receiver Medicare benefits, you are able to use
the funds within your Health Savings Account towards qualified medical
expenses.
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