Defining a Health Savings Account
Health insurance is an item all people needs, especially if they have a family. Unfortunately, numerous people don’t have adequate medical insurance in cases of serious illness. Even with health insurance, it can cost thousands to properly care for you and your family. If this is the case, you might consider HSAs. But, just what is a Health Savings Account?
HSAs are a way to help pay for current medical bills, as well as save for any future medical expenses, and are tax free. They are set up to be used along with your current health insurance savings plans, as long as you have a “high deductible” policy. An individual must have a minimum deductible of $1100, or $2200 for families. And unlike a PPO, it is a true family deductible. No two-member maximum which can become really expensive if two-members come close but don’t hit the deductible.
For 2009, you can add a maximum of $3,000 to a HSA on an individual policy, or $5,950 for a family policy. The best part about HSAs is that you get to determine how to spend the money and can even invest it in order to help it grow. In addition, if you carry a normal low deductible policy, but drop that and replace it with a high deductible policy, your maximum contribution will be pro rated to however many months are remaining in that year.
It doesn’t matter of you are the head of the house or living alone, health insurance is a must. Now, there is help in making sure that you can cover any medical issues that may occur. You’ll also know how to answer the question, “What Is A Health Savings Account”?
For more information visit www.health-savings-plans.net
This entry was posted on Tuesday, July 28th, 2009 at 5:35 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.