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Health
Savings Accounts
(HSAs)
Health Savings
Accounts (HSAs) are special tax-advantaged bank accounts available to
people enrolled in a high-deductible health plan. There are 2 major
benefits available to those taking advantage of this excellent
opportunity:
-
A Health Savings
Account allows you to pay for your out-of-pocket medical expenses
with tax-deductible dollars—and that means just about everything
including eye glasses, dental crowns and implants, orthodontia,
prescription drugs, and psychological intervention.
All
medical, dental and vision insurance policies available today
contain deductibles, co-pays, co-insurance (where you typically pay
20-40% of your claims), limitations or medical expenses which simply
are not covered. The costs for these out-of-pocket medical, dental
and vision expenses can be considerable.
PLEASE NOTE:
If you itemize deductions, you are only allowed to claim medical
expenses which exceed 10% (starting in 2017) of your adjusted gross
income — a requirement few people ever meet.
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The funds deposited
into your Health Savings Account and not used roll over to the next
and subsequent years which offers 2 major advantages:
-
The ability to
continue growing your balance gives you the opportunity to be
prepared for future large out-of-pocket medical expenses
such as orthodontia, dental implants, psychological intervention
or expensive, non-formulary prescription drugs.
At age 65, whatever monies you haven’t spent on medical expenses
can be withdrawn as retirement income.
In my opinion,
there is no better value in health insurance today.
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