Health Savings Accounts — HSA Plans, Coverage & Quotes
A health savings account allows families to save money on their health insurance. What are HSA health plans? They are comprised of tax-exempt savings accounts used for medical expenses. When money is deposited, no federal income tax is imposed. HSA plans have no gatekeeper standing in the way of your family’s health care. The HSA is combined with a high deductible family health insurance plan; this results in lower premiums. Affordable family health insurance combined with a HSA can result in significant savings on medical expenses. This is because deposits incur no income tax, and withdrawals spent on approved medical purchases incur no tax penalty.
HSA health plans can be used to pay for virtually all of your family’s medical costs, including co-payments and co-insurance associated with doctor and hospital visits. This type of family health insurance coverage also covers prescription and approved over-the-counter. An HSA insurance plan will even allow you to pay for bandages! After establishing a HSA health insurance plan, you will receive a debit card that can be used as a convenient method of payment in most medical offices, hospitals, and pharmacies that accept credit cards. If you or anyone in your family forget to use the HSA debit card when making an eligible purchase, you can file a claim with your family health insurance plan and be reimbursed.
Families can apply for affordable family health insurance that qualifies for an HSA insurance plan. An advantage of HSA plans is that the money in the account rolls over for as long as your family is insured. A HSA plan gives you the freedom to save for medical expenses; for example, the deposits made when your children and/or spouse are healthy will come in handy if they all get sick at around the same time. A family can also shop around for more affordable health care. Just make sure that nobody in your family avoids preventative care (such as primary care doctor visits) for short term savings. While it is possible to withdraw money from a HSA for non-medical purchases, there are tax penalties associated with that choice. You will have to pay full income tax on the amount of the withdrawal, plus another 10% penalty if you are under the age of 65.
Family health insurance HSAs are typically partnered with a high deductible family health insurance plan. The deductible of a family health insurance plan must be at least $2,000 per year to qualify for a health savings account. However, out-of-pocket expenses (including the deductible but excluding monthly premiums) cannot exceed $10,000 per family annually under a HSA health plan. Most non-emergency health care expenses should be paid for by your tax-free HSA plan as opposed to your taxable income, which can make it a good option for affordable family health insurance.
Family HSA insurance plans are best for young, healthy families with no pre-existing conditions who tend to utilize fewer health care services, and who expect to be without an individual health insurance policy for a specified length of time (usually six months to one year). HSA family health insurance premiums can be very affordable, since more of the cost is shifted to you out-of-pocket.
VitalOne can help you decide if an HSA and high-deductible family health insurance plan combination is the best choice for you and your family. Our licensed health insurance agents can provide you with a family health insurance quote.