HSA's are very similar to an IRA...
...that can be used NOW to pay for medical expenses.
First:
You must purchase a HDHP (High Deductible Health Plan)
that's been approved by the govt to work with an HSA Savings Acct.
Then, you can set up your HSA Savings Account...
...at the bank of your choice.
We always recommend that you try your LOCAL bank 1st.
They are MOST likely to WAIVE any monthly admin fees for you.
HSA Health Plans: http://www.instexas.com/
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Tax Savings:
You get a tax write-off for the monies deposited into your HSA Savings.
The average family can save $700 to $2100 in taxes each year.
My favorite HSA Bank has a wealth of information online:
http://www.hsabank.com/
They keep their site updated with current HSA info.
Here's a list of Eligible Medical Expenses that can be paid from your HSA Savings Account:
http://www.hsabank.com/hsabank/Education/~/media/Files/eligible_medical_expenses.pdf
...Includes childbirth/delivery!
...Plus many other things that are not even covered by health insurance plans
Here's the official HSA website:
http://www.treas.gov/offices/public-affairs/hsa/
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Your HSA Health Plan always has:
- A high deductible (before insurance starts paying your medical claims)
- NO Dr Visit CoPays (except RARE plans that offer CoPays for preventive care)
You are self-insuring the small stuff...
...paying your own medical bills out of your HSA Savings Acct.
Most banks will give you a free Debit Card (to use your HSA Savings Account funds at the doctor's office/dentist's office/hospital).
Some banks will give you free checks (to spend your HSA funds).
Your High-deductible HSA Health Plan kicks in (& begins paying claims) after
you've reached your annual medical (health plan) deductible.
Deductibles must be at LEAST $1200 ($2400 for families).
But, they can be as high as $5000 ($10,000 for families)....if you want the cheapest monthly premiums.
Your insurance company WILL negotiate medical pricing FOR you...
...before you meet your deductible!...
...IF you'll use medical providers IN your PPO network...
...for all COVERED medical expenses.
For non-covered medical expenses (like maternity claims with private health plans in Texas)...
...they will NOT negotiate medical pricing for you.
Insurance companies get substantial discounts IN their PPO networks.
And, they pass these discounts on to YOU.
Approx averages in the past have been:
30-55% off from Doctors
40-85% off from Hospitals
45-90% off from Labs
SOME medical providers do NOT mark-it-up to mark-it-down.
So, you will NOT get these HIGH discounts from them!
You'll simply get a FAIR market price (for your medical treatment).
You'll want to use your Health Insurance ID card ...
...(even if you have NOT met your deductible yet).
This will ENSURE that you'll get negotiated (reduced) medical pricing when it's available.
You can just show your ID card to the PPO providers (in your PPO network).
They'll file a claim & negotiate medical pricing with your insurance company.
You can use your HSA Debit Card (or HSA "checkbook") to pay your reduced
price to the medical provider.
Then, you're paying:
- Lowest price possible
- With Tax-FREE money!
(You'll never pay taxes on that money!)
The money in your HSA Savings Account is YOUR money!
You NEVER lose it.
You can just "spend" it...as you need to pay medical bills.
Then, if you don't spend the money for medical bills, it becomes a
"retirement account" at age 65 (like an IRA).
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Here are the maximum deposits you can make into your HSA Savings Account for 2010:
$3050 for those who own an Individual HSA Health Plan
$6150 for those who own a Family HSA Health Plan
The maximums increase each year.
The new maximums are usually announced by December (ea yr).
Your exact tax write-off will depend upon your tax bracket.
Example.......If you're in a 25% tax bracket:
$6150 x 25% = $1537.50.......Your write-off for 2010
If you're in a 15% tax bracket:
$6150 x 15% = $922.50.........Your write-off for 2010
...and then, you can make ANOTHER deposit in 2011
...and get another $9xx.xx write-off on your 2011 tax return.
*******
Let's assume that you want to have a baby in a few years...
...and you set up your HSA Savings Account in 2010...
...and that your tax write-off is $1000 each year.
$1000 - Saved in 2010
$1000 - Saved in 2011
$1000 - Saved in 2012
You've saved $3000 (...money that you'll NEVER pay in taxes if you use your savings account funds to pay for your medical/maternity expenses).
Pay your own maternity claims with your HSA Savings Account.
And, have an extra $3000 in your own pocket, too.
"A penny saved is a penny earned."
You've saved-up $6000+ each year (in your own HSA Savings Account).
You have over $18,000 (in your own HSA Savings Account) to pay your medical (and maternity) claims (with the tax-FREE money).
For more info about costs for maternity claims (in Texas):
http://maternityplans.blogspot.com/
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Family HSA Health Plans have:
- ONE combined FAMILY deductible (per calendar year)
Many of the HSA Health Plans pay at 100% AFTER you've met your deductible.
For Best HSA Health Plan Quotes:
- http://www.instexas.com/
- Instant Online Quotes
- HSA Plans
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Legal Disclosure:
I am no longer a licensed tax advisor.
I'm only a licensed insurance agent.
I cannot legally give you tax advice.
You should consult a legal tax advisor for tax advice.
I've given you tax info (above) as I understand the laws...
...as a layperson & former corporate tax advisor (many yrs ago).
I have studied MANY of the tax laws...
...but they're coming at us a mile-a-minute right NOW...
...& it's impossible for me to keep up with them any longer.
(We STILL don't know much about the ObamaCare laws/changes. It's HUGE &
confusing & full-of-gaps! The actual "rules" & "tax codes" will be written
by the Health & Human Services Secretary & other govt authorities....as THEY
figure out "what" the law really says.)
Hope this info is helpful!
Ruth Stewart
Best Health Insurance Rates in Texas
http://www.instexas.com/
Texas license # 1012551
You can use our Instant Online Quote Engine to find Health Insurance Plans/Quotes/Rates for OTHER states, too.
- http://www.instexas.com/
- Instant Online Quotes ... (Green Bar at top of home page)
A licensed insurance agent in YOUR state can help you pick the RIGHT plan (for YOUR needs).
