HSA Accounts, HSAs &Health Savings AccountsThe three terms Health Savings Accounts, HSAs, & HSA Accounts are often used interchangeably. The important thing to understand is that there are invariably two components that make up an HSA. Health Savings Accounts were never designed to be complicated, only beneficial to the health care consumer. In fact the concept of consumer driven health care manifested on the creation of health savings account plans beginning in January of 2004. After reading over our website, HSA accounts and plans will soon become very simple to understand, even more so than the traditional health plans you are used to. Click on the different links as desired in the following paragraphs to further crystallize your knowledge. Firstly there is the health insurance component of an HSA, the HSA plan which is always a high deductible insurance plan. You may also hear this referred to by the acronym HDHP (which stands for high deductible health plan). Through one of our expert advisors at HSAHealthSavings, you can purchase HSA compatible health insurance from the carrier of your choice (Anthem/Blue Cross, Blue Shield, and many more) in the same exact way as buying traditional health insurance. We offer a large variety of plans from virtually all of the carriers within your state. There are different plans available, some certainly more rich in various benefits than others. All HSA health plans share a commonality. By following strictly defined standards and guidelines, these plans are deemed by the IRS as HSA Qualified. When you read about these plans in the carrier brochure literature or see the plan listed online in the quoting engine, you can be sure that if the plan includes the letters H-S-A , it has already been approved by the Internal Revenue Service (IRS). Secondly, there is the Health Savings account component (in contrast with the insurance plan component) of which you will have administered by an HSA Administrator. We recommend choosing from a variety of independent third party administrators. We do not suggest going through your insurance carrier to find an administrator, although they do offer them. Read about our reasons for this on our Health Savings Administrators page. Finally you have the option every year to contribute money into your HSA account up to the maximum allowable limits. Read about the new 2009 contribution limits. You have total freedom to choose the the type of investment vehicle through which to watch your money to grow tax-free. The money in your account is always yours and rolls over from year to year without penalities or spending requirements. Withdraw your funds tax-free as needed for eligible medical expenses. If you withdraw the money for things other than qualified medical expenses before the age of 65, you must pay income tax and a 10% pre-withdrawal penalty. After age 65, there is no 10% penalty regardless of how you use the funds. Your HSA administrator will provide you with a debit card and/or a checkbook that is linked directly to your HSA account to pay for qualified medical expenses . It is virtually that simple! |
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