Medical Plans USA

Health Savings Accounts (HSA) are one of the hottest trends in healthcare. 

Who can have an HSA?

By federal law, only people who are enrolled in a high-deductible health plan (HDHP), with no other primary medical coverage, may use the tax breaks of an HSA.

What are the contribution premiums for 2010?

• For individual coverage, the maximum contribution will be increased to $3,050 from $3,000.
• For family coverage, the maximum contribution will be increased to $6,150 from $5,950.
• In addition to the contribution maximum, catch-up contributions of $1,000 may be made up by or on behalf of individuals age 55 or older and younger than 65.

What is a Health Savings Account (HSA)?

An HSA is a personal savings account that allows you to pay for qualified medical expenses with tax-advantaged dollars.  You (and/or your employer) contribute money to an HSA through pre-tax or post-tax contributions.  The money contributed to the account is not subject to federal income tax at the time of deposit.  Funds in an HSA roll over and accumulate year after year if not spent.  All money in your HSA is owned by you.

How does an HSA work?

When you enroll in an HSA-compatible health plan, you are eligible to open an HSA.  Once you open an HSA, you contribute money to your HSA.  You can use the money in your HSA to pay for qualified medical expenses.  Many financial institutions will provide a debit card or checkbook for easy access to your HSA funds.  Any money you don't use in one year simply gets rolled over to the next year.

Who is eligible to open an HSA?

Individuals may open an HSA if they are enrolled in an HSA-compatible health plan.

How much does an HSA cost?

An HSA is not something you purchase - it's a savings account where you deposit money on a tax-preferred basis and out of it, you pay for qualified medical expenses.  However, the financial institution you set up your HSA with may charge monthly service fees for your account just like any other savings account.

What is an HSA-compatible health plan?

HSA-compatible health plans are high-deductible health plans (HDHPs) that offer lower premiums/dues and higher deductibles than health plans which are not HSA-compatible and can be used with an HSA to obtain tax advantages.

Can my spouse have a separate HSA?

Yes.  You can each have and contribute to an HSA as long as neither of you has family coverage.

How often can I/do I contribute to my HSA?

You can contribute in a lump sum or in any amounts or frequency you wish.  However, the financial institution that holds your account can impose minimum deposit and balance requirements.  The same is true if you are receiving contributions from an employer.

Do I earn interest in my HSA account?  Can I invest my HSA?

Yes.  HSAs are like IRAs in that they can earn interest and be invested, depending on requirements by your financial institution.  The same types of investments permitted for IRAs are allowed for HSAs, including stocks, bonds, mutual funds, and certificates of deposit.

Can I use the money in my HSA right away?

Yes.  You can use your HSA money for qualified medical expenses as soon as you have money in your HSA - assuming you are enrolled in an HSA-compatible health plan.

What happens to my money if I cancel or lose my HSA-compatible health coverage?

You own the money in your HSA, so any money deposited into your HSA will remain in your account and automatically roll over from one year to the next.  You may continue to use these funds for qualified medical expenses if you are no longer enrolled in an HSA-compatible health plan, but will no longer be able to make contributions to your account.  If you regain an HSA-compatible health plan at a later date, you can resume contributions to your HSA.

What's the difference between an HSA and an FSA?

The big difference between an HSA and a Flexible Spending Arrangement (FSA) is that HSA contributions not used by the end of the year are not lost.  You can keep rolling the money forward in your account each year, even into retirement.

In today's economy, individuals and employers everywhere are looking for ways to get more for their money.  Some employers may be considering cutting back benefits or cutting them out altogether. 

With HSA, employers can use their benefit dollars more efficiently while still providing their employees great health benefits. 

Get Quotes and Apply Online Now!

If you have questions, contact us immediately:

(800) 898-2969

Or email us:  

Sales@MedicalPlansUSA.com