Health savings accounts (HSAs) can help individuals save money by paying for a number of health care expenses that are not covered under their current health insurance policy. These plans may also help in providing funds for individuals with a limited amount of health insurance coverage, especially on services that may be related to uncovered preexisting conditions.
There are a number of ways HSAs can save you money on your health care expenses. The first way is that HSAs provide individuals with a tax-free account in which to save money. This means that any money saved in the account will not be taxed when it is withdrawn. In addition, HSAs may offer individuals a higher interest rate on their savings than what they would earn through a traditional bank account.
Another way HSAs can save you money is by providing a lower cost for health care services. Many HSA-eligible health insurance policies have lower premiums and out-of-pocket costs than those that are not eligible. In addition, many providers offer discounts to individuals who
As HSAs are set up in conjunction with high-deductible health insurance policies, someone considering purchasing one should first determine if the plan’s deductible will be manageable should a medical need arise.
However, in many cases – primarily for those who are young and in good health – a high deductible health insurance policy does make sense; typically the higher the deductible, the lower the premium will be for the policy.
In addition to building up a health-related savings fund, owners of an HSA may even obtain tax advantages, as they may be able to deduct the deposits that go into their HSA account when preparing their annual tax returns.
When withdrawn for qualifying health-care related costs, the money in an HSA often can come out tax-free. In addition, funds within the HSA account will typically grow on a tax-deferred basis, allowing the money to compound faster.
Health savings accounts are a great way to save money on your health care expenses. These plans often offer lower premiums, deductibles and out-of-pocket costs than traditional health insurance policies. They also allow you to build up a tax-free account in which to save for future medical needs with the added bonus of compounding interest! If you have any questions about HSAs or how they can help you cut down on cost while maintaining superior coverage, contact our team today at 816-254-6100. We are eager to answer all your questions and get started building an HSA plan that is right for you!
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