As consumers weigh their Texas health insurance options, they’re presented with plans ranging from traditional PPOs and HMOs to Texas health savings accounts. While many plans can provide solid health insurance for you or your family, a health savings accounts enjoy particular benefits not seen with more traditional plans.
Tax-Deductible Contributions — Health savings accounts are funded by one’s pre-tax income, so a Texas HSA is a way to save money on a tax-free basis to use for qualified medical expenses.
Grow Your Money Tax-Free — Once your money’s in a Texas HSA, it can grow just like a regular investment account, but your monetary gains go untaxed.
Tax-Free Withdrawals — Yet another tax-related benefit of a Texas health savings account is that you can withdraw your money tax-free as long as you’re using the funds for health care expenses like doctor visits, prescriptions and even certain alternative therapies. To make withdrawals especially easy, many health savings accounts offer checks and debit cards linked to your HSA for paying medical costs.
You Own Your HSA — Health savings accounts are totally portable, so if you lose your job or change jobs, your HSA goes with you. This provides peace of mind for individuals and families as they can remain covered, even while enduring a tough job market.
No Use-It-Or-Lose-It Policies — While Flexible Spending Accounts operate on a use-it-or-lose-it policy, there’s no penalty for not using all the funds in your Texas health savings account. The funds will simply roll over year after year, so people who remain relatively healthy can accumulate substantial savings through their HSA.
When You’re in Charge, You Save — Health savings accounts put consumers in the driver’s seat, giving them autonomy and control over their health care costs. When consumers are allowed to make decisions regarding their medical care, they tend to spend wisely and get more value for their money.
To enroll in a Texas health savings account, you simply need a high deductible health plan. For 2010, the eligibility limits are a $1,200 annual deductible for an individual or a $2,400 annual deductible for a family. Considering the tax benefits and plan flexibility–plus the uncertainty surrounding ObamaCare, it’s no surprise that more and more consumers are signing up for HSAs every day.