Are you feeling a little lost in the sea of options for healthcare policies? Let us help you navigate the waters to find out if a health savings account (HSA) is the right choice.
Having an HSA helps you save money for all your health care needs.
Jenny and Rob, a young couple just starting out, have looked around at all sorts of policies. They are newly wed, and just bought their first home. Jenny runs her own home internet business and Rob works for an engineering firm that offers a PPO and an HSA option. His employer will fund a portion of the HSA yearly. Rob can fund the balance up to the annual HSA contribution limit set by the IRS. They can save money and work to keep their healthcare costs down. They own the money in the account, and if they relocate to another job, city, or state, the funds go with them.
They found that with the HSA, the plan costs less but has a higher deductible. Their doctor visits per year are few. It makes sense to consider a high deductible plan. And the best part? They can have an HSA and fund it each year, giving them a medical security blanket and tax benefit. It’s the best of both worlds!
What’s the best buy for me?
Employer paid, low deductible plans have been the standard in America for decades. Medical/Health Savings Accounts coupled with a high deductible insurance policy were ground breaking when introduced in the 90's. For the first time in years, consumer driven healthcare came to the forefront of thought. We could make informed healthcare choices, save money on healthcare premiums and get a tax benefit, all at once.
When considering signing up for an HDHP look at how you participate in the medical system. This will help you determine how to fund your HSA. When you visit the doctor, you pay for services from your HSA until your insurance deductible is met. If you can pay in full in at time of service, the doctor may be willing to discount costs.
Being smart and savvy…
Having a say in how your healthcare dollars are spent is a great feeling. Having your HSA funded and there for you when you need it, makes you one smart consumer!
Blog Written By: Robin Vankleek
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