How to Save Money with Health Savings Accounts 1-2-3
How to Save Using HSAs
As a small business owner, health insurance premiums suddenly become a point of interest. You want to make
sure your have adequate health coverage, but you don't want to pay too much that it takes away from your
company profits.
It is a good idea to compare health insurance plans and rates to make sure that you get the optimal coverage
for you. One money-saving option is an HSA, or a Health Savings Account. What is an HSA and What are the Benefits?
You can set up an HSA through your health insurance provider, and you can contribute money into the account
on a regular basis. When health expenses come up, you can pay for the medical costs from the HSA with tax free
money (money withdrawn to pay for medical expenses is tax free). What money does not get used will grow in the
HSA tax deferred.
The funds that you contribute into your HSA are meant to be used alongside a high-deductible health
insurance plan - for the costs that the insurance does not cover.
With a high-deductible plan, you can save money on your monthly premium, and with an HSA, you can make sure
that you are prepared for any unexpected medical expenses that arise.
How Do You Qualify for an HSA?
In order to qualify for a HSA, you must be under the age of 64 and you cannot be claimed on someone else's
tax return as a dependent.
There are certain stipulations to the plans, which could be viewed as disadvantages - such as minimum
deductibles and maximum out-of-pocket expenses.
Not all policies are HSA qualified, so if you want the option to participate in a Health Savings Account you
want to check prior to enrolling in a plan.
More Health Insurance Resources:
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