Health Saving Accounts: Are They Best
One Source Benefits
HSA Benefits Exceed Expectations
Unlike similar accounts, health savings accounts do not penalize you for
estimating over or under the annual amount needed for medical coverage.
Whatever money is not used will be left in the account for when you do
HSA’s are accounts owned by the individual not his or her company. That
means it is all your money and your employer cannot keep it should you
leave your job.
All money that is used for medical expenses is tax-free money. What you
contribute to the expense is actually the real payment amount.
Which would you rather have?
Health savings account IRA or 401K
HSA’s only have taxes taken out 401k’s and IRA’s are tax-deferred
when the money is not used accounts, meaning you do not pay
towards a medical need. taxes until the money is
Earn tax-free interest and
Earn tax-free interest and
investment income every year. investment income every year.
Once you reach 65 can use account No tax-free medical spending.
like an IRA or 401(k) and still not
pay tax on medical fees.
Having an HSA could be better
than getting a raise!!!
Why you ask? The amount your boss gives you when deposit
the money into a health savings account is tax-free. So the
amount given is the amount received because neither of you
have to pay taxes on that money.
Cash that is allocated to an account such as an HS A will
probably be more appreciated since it will better spent and less
likely to be used on something you do not really need. Overall,
health savings accounts can lead to more prudent spending.
HSA’s May be a Better Option than
For those who have more expensive medical needs, health savings
accounts are very likely a more cost-effective option than Preferred
Provider Organizations (PPO). PPO’s are predictable because you
know the copayment amount, and the out of pocket maximum.
However, the copay and the deductible to not contribute to the OOP
max. Consequently many doctor visits will continue to accumulate
and therefore costs will be higher .
As for HSA’s, the amount paid at the time of the visit is more, but
you will later receive the insurance company discount. The biggest
difference though is that the amount paid at the doctor’s visit is
applied to the deductible as well as the OOP max, thus saving you
money in the long-run.
The Clock is Ticking!!!
With so many changes in healthcare on the
horizon, it is better to begin looking into
HSA’s sooner rather than later. Before long
the costs of premiums will be going up as
more and more individuals begin to buy into
these accounts. Don’t wait until 2014 to
discover what could be your best option. Talk
to an experienced Ohio broker today and find
what’s best for you!
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