Health Savings Account
The Affordable Care Act has been official for months now and some Americans are still wondering if they will be affected. If you using a health savings account (HSA), you may be curious to know if any major changes are occurring in 2014
Health savings accounts allow employers to contribution tax-free contributions into their employees health plan. Primarily, this account is used to help cover out-of-pocket expenses. The Health Savings Account is a flexible tax-advantaged medical savings account that offsets your health care expenses. Available to U.S taxpayers, this program frees you from any tax liability on the amount you deposit into an HSA. The funds that you contribute will cover your current and future qualified medical, dental, and vision expenses.
Your over-the-counter drug requirements will also be covered in the program. There are certain requirements that you need to meet when you apply for an HSA Plan. Here are the basic to be eligible:
- You must be at least 18 years old;
- You are a holder of a high deductible health plan (HDHP);
- You should have no other general health insurance coverage apart from HDHP;
- You must not have registered for Medicare benefits yet, and;
- You must not be a dependent of someone else’s income tax return
Aside from being tax deductible, holders of an HSA Plan can enjoy several benefits. The most apparent of which is being able to fund the future. However, just like any other programs, opening a health saving account has its share of negative aspects. Thus, it is wise to discuss the matter first with a qualified HSA trustee before deciding on it. An HSA trustee could be your bank, an insurer, or somebody who is an Internal Revenue Service-approved individual.
According to the latest development in the insurance industry, health savings accounts show consistent growth and popularity. Paired with high deductible health plans, the program is a convenient and economical option for employers and employees. As healthcare continues to change, the HSA plan has seen its changes to. For example, HSA funds can not be used to cover over-the-counter medications without a prescription. There are fines for misusing the funds. There were no significant changes seen once the Affordable Care Act become effective.
If you have questions regarding a health savings account, let Blue Sky Coverage help you set this up. Contact us today to get your health insurance quote online.