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					Title:
Health Savings Account (HSA)

Word Count:
328

Summary:
HSA is designed and introduced to reduce the health care cost for both
employers and employees. Health savings account (HSA) is tax privileged
savings plans offered to taxpayers in the United States to deposit money
to cover current and future medical expenses.HSA provides tax-free
savings account for medical expenses and introduced to reduce the current
healthcare costs.


Keywords:
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health plans


Article Body:
HSA is designed and introduced to reduce the health care cost for both
employers and employees. Health savings account (HSA) is tax privileged
savings plans offered to taxpayers in the United States to deposit money
to cover current and future medical expenses.HSA provides tax-free
savings account for medical expenses and introduced to reduce the current
healthcare costs.

HSA is passed by congress in the year 2003, which is a tax-free savings
account. It covers both individual and group health insurance. These
savings are utilized for normal and customary expenses, like routine
health checkups, doctor’s visits, and etc.In addition to the tax free
savings HSA are more portable. Since you are not coupled with any
particular medical group or doctors, you can pick yours.

Health Savings Account offers a new feasible alternative to Medical
Savings Account (MSA).HSAs can be used with health plans with decreased
minimum deductibles. HSA can be used with minimum deductibles. HSA and
MSA vary in several ways. Notable variation is HSA are offered by
employers of all size whereas the MSAs are limited to employers who
employed 50 or fewer people.

Both employers and employees are benefited through Health Savings Account
(HSA), but the deposit should not exceed the limit, proposed by Federal
law .Employers can discriminate between full-time and part time
employees, and/or family and single coverage.

HSA are analogous to IRAs, you can get same benefit as with IRA’s.In the
HSA there is no age restriction and qualified medical expenses are never
taxed. But in the IRAs money may be taken out without penalty at age
65.At the same time penalty for non-medical withdrawal before age 65 are
usually severe.
Benefits: The HSA plans are blend with a high-deductible plan. It
provides tax free medical expense. It facilitates employees become better
health care consumers. The accumulated savings are owned by the
individual and can move from employer to employer. There will be free of
tax for the employers’ contribution.

				
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