Health Savings Accounts
By Glenn Miller
If you are considering changing your health insurance
policy, you should be aware of the alternative of a
Health Savings Account (HSA), a tx advantaged kind of
health policy.
Health Savings Accounts started to become available
(and legal) in 1997, allowing people with
high-deductible insurance policies to set aside
tax-free money to fund medical expenses up to the
maximum deductible amount.
If you don’t have to use the funds, it rolls over
every year. Once you reach age 59-1/2, you no longer are
required to use it for medical expenses, although you
certainly can; you can withdraw funds under the same
conditions as a regular IRA.
Although you will be penalized if you use the funds
for non-medical expenses prior to age 59-1/2, you can use
the money for vision care, alternative medicine or
treatment and dental care, any approved medical expense.
For 2010, an individual may fund up to $3,000 tax
free. The maximum deductible would be $3,000 and the
maximum out-of-pocket cost would be $5,000-5,600.
For a family, the maximum tax-free contribution is
$5,950 with the maximum deductible of $5,960 and the
maximum out-of-pocket cost would be $10,000.
Health Savings Accounts are certainly a viable way to
shelter income while providing catastrophic insurance
coverage in light of the high cost of low-deductible
health insurance plans.
For healthy people, it deserves some research. Consult
with your insurance agent for all of the details
involving this approach to managing your insurance
needs.
Contact Glenn at
Glenn E. Miller, LUTCF
Independent Insurance Advisor
Jones & Associates
2436 W. Main St., Ste. 101
Medford, OR 97501
541-773-9567, toll free 1-888-707-9567
Cell 941-3084
www.glennmillerinsuranceadvisor.com
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