Times are tough, and everyone could stand to save a bit of money these days. One important money-saving option to consider is a health savings account (HSA). By pairing a Texas health savings account with a high deductible health plan (HDHP), individuals can save up to of 40 percent on health insurance premiums. Contributions made to your HSA are on a pre -tax basis—similar to contributions made to an IRA—but unlike a traditional IRA, you are not penalized when you withdraw money for eligible medical expenses that are under your deductible . Instead of paying high monthly health insurance premiums, individuals with HSAs use the money they save for any medical expenses they incur, thereby controlling how their health care dollars are spent. Any money left in the account at the end of the year rolls over year after year, on a tax deferred basis, and this money accumulates on a tax free basis. It doesn’t get any better than that!
It’s important to note that an HSA cannot be combined with just any high deductible health insurance plan. The IRS has set specific guidelines to determine if a high deductible plan is HSA-eligible. Because of these guidelines and the variations of state underwriting requirements, it’s helpful to contact a Texas health insurance broker to guide you through the process.
This is definitely not your traditional health insurance plan. Individuals accustomed to HMO or PPO plans, with set co-pays and select health care providers, might find a health savings account to be a refreshing change. With an HSA, consumers are accountable for their own health care spending and are empowered to make the decisions best suited to their health and budget. Saving some money while taking back control of our own health care is something we could all use more of these days.