Health Savings Accounts (HSAs) were passed into law in 2003 and became effective January 1, 2004. They were created with the intent to give you more control over your own healthcare decisions and lower your overall cost – without compromising quality and choice.
Simply put, an HSA is a tax-favored savings account designed to pay (or save for) medical and preventive expenses with tax free dollars. Plus HSAs can provide an additional tax-deferred retirement account with the option of investment opportunities. As such, it is commonly referred to as a medical IRA (without many of the restrictions and penalties).
To qualify for an HSA, you must have a High Deductible Health Plan (HDHP). HDHPs offer a more affordable approach to health insurance while maintaining the protection and security in the event of a catastrophic illness or injury. In short, you use tax-free funds from your HSA to cover medical and preventive expenses until your deductible is met. Once your deductible is met, your insurance kicks in and pays according to your plan design.
- Lower Premiums by 25% to 50% or More
- Pay Healthcare with Tax Free Dollars
- Reduce Your Taxes
- Build an Additional Retirement Fund
The concept is simple: Lower your premiums; bank the money you save into a privately owned, interest bearing HSA; pay for medical, preventive, and alternative healthcare with tax free dollars; and lower your taxable income while saving for your retirement. In essence, this strategy allows you to choose your healthcare, pay yourself, and protect your assets by paying less to the insurance companies and the IRS.
As a national independent H.S.A. administrator, American Health Value can work with your agent (or help you find one) to ensure that you find the HDHP in your state that offers the best plan design for you at the lowest possible cost.
For further information please contact American Health Value at 1-800-914-3248, or visit www. americanhealthvalue.com.