Take control of your medical expenses

Health Savings Accounts (HSAs) are an increasingly popular way for individuals to pay their medical expenses. Paired with a high deductible health plan (HDHP), these individually owned savings accounts allow you to decide what to spend your money on, tax-free, as long as it is an eligible medical expense. And, your investment will grow with earnings.

HSAs provide:

• Savings account to pay for eligible out-of-pocket health expenses
• Owned 100% by you
• Money deposited by you and/or your employer
• Use it or keep it

HDHPs provide:

• Catastrophic insurance
• No office call or prescription co-pays
• Preventive care coverage

Like an IRA for healthcare
Unlike a flex plan, HSAs are not "use it or lose it." Unused funds remain in your account, roll over, and more money can be added next year by you and/or your employee. Small business owners and sole proprietors who are excluded from participating in a flex plan's unreimbursed medical are eligible to receive these benefits in an HSA. But unlike an IRA, there are no income limits on who may contribute to an HSA.

How do HSAs work?

• HSA funds can pay for any qualified medical expense, even if the expense is not covered by the high deductible health plan. Most health insurance does not cover over-the-counter medicines, like pain relievers or cold medicine, but HSAs can. Dental and vision expenses are also included.
• The maximum amount that can be contributed (and deducted) to an HSA from all sources, indexed annually, in 2009 is:
• $3,000 (self-only coverage)
• $5,950 (family coverage)
• Individuals between the ages of 55 and 65 may make additional contributions into their HSA of $1,000 annually.

For more information on how a Health Savings Account can work for you and your employees, call Randy Carlson at 1-800-798-4080 or consult our firm directory.