| Health Savings Accounts (HSA) |
|
| Health Savings Accounts (HSA) help you take
control of your health care expenses with a tax-favored savings
account and comprehensive medical coverage. No company has more
experience with Health Savings Accounts than Golden Rule. Golden
Rule pioneered the first tax favored HSAs, then known as Medical
Savings Accounts, offered to the public in 1997. Effective January
1, 2004, tax-favored HSAs are available to all! If you would like to learn more then PLEASE contact us!
|
|
| What's a Health Savings
Account? |
|
 |
| HSAs typically cost less than many
traditional plans. |
An HSA
combines high deductible health insurance with a tax-favored savings
account. Money in the savings account helps pay the deductible. Once
the deductible is met, the insurance starts paying. Money left in
the savings account earns interest and is yours to keep.
Why
High Deductible Health Insurance?
To get the benefits of an HSA,
the law requires that the savings account be combined with high
deductible health insurance. High deductible health insurance costs
less than traditional $250 or $500 deductible coverage, because the
insurance company doesn’t have to process and pay claims for
routine, low-dollar medical care. |
|
| How Does a Health Savings Account
Work? |
|
 |
| HSAs help you save tax-deferred if
used for medical
expenses. |
You obtain coverage under a qualified health insurance plan
with a minimum deductible of $1,000 for singles and $2,000 for
families.
Each year you’re allowed to save 100 percent of
the health plan’s annual deductible, up to $2,650 for singles and
$5,250 for families in 2005. Older Americans can save even
more!
You use the savings account to pay for your
lower-dollar medical expenses, or those that aren’t covered by the
health plan.
Once you meet the deductible, the health
insurance covers your medical expenses as defined in the
policy. |
|
| What are the benefits of a Health Savings
Account? |
|
|
Health
Coverage Benefits
|
| Medical
Simple:
100%
coinsurance after the deductible is met (optional 80%
coinsurance to lower premium).
Predictable:
One
deductible per family.
Comprehensive:
Quality medical, including adult preventive care and
prescription drugs.
|
Savings
Account
First dollar:
Savings can be used to help pay the deductible and for
noncovered medical expenses, such as dental and
vision.
Security:
Savings reduce or eliminate annual out-of-pocket
exposure.
Pool of money:
Savings not spent remain in the HSA
tax-deferred. |
|
Tax Benefits
|
|
Tax-deductible:
Contributions to the HSA are 100% deductible -- just
like an IRA (see brochure insert for legal limit).
Tax-favored:
Withdrawals for covered medical expenses are never
taxed. |
Tax-deferred:
Interest earnings accumulate tax-deferred, and if used
for qualified medical expenses, are
tax-free. |
|
|