Many of you have heard about Health Savings Accounts but aren’t completely sure how they work. If you purchase your own health insurance and haven’t looked at this option, it might be time for a look. A Health Savings Account Health Insurance plan or HSA Plan puts the insured in control of the Health Insurance plan. First you have much lower cost premiums, then you get to put pre-tax dollars in to a Health Savings Account and spend the money tax free on qualified medical expenses. Eventually if you don’t use the money in the Health Savings Account you can use the money in retirement (must follow the IRS guidelines to avoid penalties). You can even purchase items such as Aspirin or Vitamins.
Now when I talk about HSA’s with prospective clients one of their first concerns is ‘What happens at the end of the year if I don’t spend all of the money?’. The answer is: it rolls over to the next year just like your checking or savings account at a bank. People are getting confused about Flexible Spending accounts where you DO need to spend the money by the end of the year or the money is gone. Health Savings Accounts also have much more flexibility when it comes to using the money for medical bills.
Since there is a high deductible attached to these plans you must be disciplined enough to put money aside each month in to your HSA account. Nobody will require you to make those deposits but it is essential when you have an HSA Health Insurance plan. Without having money in the Health Savings Account you will be left with large medical bills if something serious happens. Usually what I recommend when I give a Health Insurance Quote that is an HSA Policy that the money they save each month in premium to put some or all of that money in to a Health Savings account until that money in the account accumulates to equal the deductible. Then if something does happen you won’t have much, if any, out of pocket since you can access the Health Savings Account funds.
Call us today if you want to get a Health Insurance Quote from one of our top HSA Health Insurance providers.
Thanks for reading!
Bryan Cranson owns an independent Insurance Agency in Northville, Michigan specializing in Business Insurance and Health Insurance. They are licensed in the following states: Arizona, California, Indiana, Illinois, Kansas, Michigan, Missouri, New Mexico, New Jersey, Ohio, and Oklahoma.
