HDHP's and HSA's

Thanks for visiting my Blog!!

The Health Insurance industry is always changing. With insurance companies merging, consolidating, raising rates and reducing benefits it can be difficult to get the coverage you need in times of crisis. With the cost of medical care skyrocketing at an alarming rate, it can be impossible to keep your family financially solvent when you have a medical crisis even if you do have insurance. And, as with all types of insurance, you need to purchase it BEFORE you need it; once you need it, it's too late.

The most common types of Health Insurance plans in America are the traditional plans that everyone is familiar with ~ HMO's and PPO's.

But have you heard of HSA's?

HSA's (Health Savings Account) are a new way of thinking; or better said, HSA's are a new twist on an old concept.

You start by purchasing a Federally approved "High Deductible Health Plan" (HDHP) thru the carrier of your choice such as Blue Cross of California. Once that policy has been approved and issued, you then open an HSA thru one of many Federally approved financial institutions such as Wells Fargo Bank and Chase Bank.

HSA's are designed by the Fed Government to allow you to fund a separate Health Savings Account using Pre-Tax dollars. You then use this HSA to pay for your out of pocket medical expenses throughout the year. A single person can put nearly $3000 per year into your Tax Free HSA. You can choose to fund the account anyway you want....lump sum annually, regular monthly or quarterly deposits etc. At age 65 any money that you have built up in your HSA can be used to pay for long term medical care premiums and costs or to pay for your Medicare Supplement Policy premiums or it can sit there as an inheritance item.

As with all insurance, the higher your deductible is, the lower your premium will be. The idea behind HSA compatible HDHP is that the money you save by paying lower premiums is put into a Tax Free HSA to be used to pay for your out of pocket medical expenses.

Its a Win-Win situation.

You can more find information at the Department of the Treasury's website including answers to frequently asked questions, related IRS forms and publications, technical guidance, and links to other helpful web sites. The Treasury's HSA website can be found through http://www.treas.gov/ (click on "Health Savings Accounts") or directly at the following address http://www.treas.gov/officers/public-affairs/hsa/

For more information, please email me! To quote or apply for your own HDHP/HSA please visit my website at http://www.crossins.com/

Cheers!

Julia Cross
CA Lic # 0B28378