Health Savings Accounts — HSA Plans, Coverage & Quotes
A Health Savings Account, otherwise known as an HSA, is a way for individuals to save money on their temporary health insurance. HSA health plans consist of tax-exempt savings accounts that are used for medical expenses. When money is deposited, no federal income tax is imposed. HSA plans offer the greatest level of freedom, since there is no gatekeeper standing in the way of your health care. The HSA is combined with a high deductible short term health insurance plan; this results in lower premiums. Affordable temporary health insurance combined with a HSA can result in significant savings on medical expenses, due to the fact that withdrawals spent on approved medical purchases incur no tax penalty.
HSA health plans can be used to pay for virtually all of your legitimate medical costs, including co-payments and co-insurance associated with doctor and hospital visits. This type of temporary health insurance coverage also covers approved medications–both prescription and 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 major credit cards. All isn’t lost if you misplace your HSA debit card; you can be reimbursed for eligible expenses by filing a claim with your short term health insurance plan.
Individuals can sign up for cheap short term health insurance that incorporates an HSA insurance plan. One of the primary advantages of HSA plans is that the money in the account rolls over for as long as your temporary health insurance policy lasts. A HSA plan you to save for medical expenses and take control of your health care by shopping around. However, you need to exercise caution when making health care decisions, so you won’t avoid preventative care you actually need just to save a few dollars in the short term. Even though short term health insurance coverage with a health savings account allows you more flexibility in your purchases, HSAs aren’t free money. If you take out health savings account funds in order to to spend them on non-medical expenses, the withdrawal amount will be considered income and taxed in your normal income tax bracket. Not only that, but removing money for unapproved reasons will result in policyholders under age 65 getting hit with an additional 10% penalty.
Temporary HSAs are typically partnered with a high deductible short term health insurance plan. In order to qualify, the annual individual deductible of a temporary health insurance family must amount to or exceed $1,100; out-of-pocket expenses per individual cannot are limited at $5,500 per year 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 makes it a good option for affordable short term health insurance.
Short term HSA insurance plans are best for young, healthy people who tend to utilize less health care, and who expect to be without an individual health insurance policy for a specified length of time (usually six months to one year). Appropriate circumstances include temporary unemployment, recent college graduation, or other factors that would otherwise leave you uninsured for a certain period of time. HSA short term health insurance premiums can be very affordable, since more of the cost is shifted to you out-of-pocket. On the other hand, those with pre-existing conditions or who are older may be less suited to a temporary HSA plan.
Are you interested in a temporary health insurance plan with a health savings account? VitalOne can help you decide among short term HSAs and high-deductible health insurance plans. Our licensed health insurance agents are here to provide you with a short term health insurance quote now.