Health Savings Accounts
Get a Quote »Health Savings Accounts are designed to compliment high deductible group and individual insurance policies. Consumers often choose high deductible insurance policies in exchange for lower monthly premiums.
The premium savings can be contributed on a tax deductible basis to a qualified HSA plan at any number of financial institutions. Monies can then be withdrawn tax free to pay for qualified medical expenses.
We work with the leading HSA qualified providers including Aetna, Anthem Blue Cross and Blue Shield, Assurant Health, Golden Rule, United Healthcare, Medical Mutual and others.
On our site, you can search the most popular and affordable carriers to obtain a competitive individual or family HSA quote. Please contact us for group HSA, HRA or FSA quotes.
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HSA Tax Deductions and Investment Options
Dollars contributed into a HSA by an individual or an employer are considered pre-tax by the I.R.S. In this way, a health savings account works much like an Individual Retirement Account. The contributions to a HSA are tax deductible and grow tax deferred. Unlike an IRA, monies can be withdrawn from your HSA tax free for qualified medical expenses. There are no age requirements either.
A money market account can be used to safely harbor your contributions until they are later needed. Additionally, many health plans offer mutual funds as an investment option to offer overall growth potential. Of course, some market related instruments will add risk and can deplete health savings accounts due to market fluctuations. Investment losses are not tax deductible.
You are not taxed on any interest or fund appreciation in your HSA account as long as funds are used for qualified expenses. The I.R.S. has a long list of what is considered a qualified medical expense, but it can be something as simple as paying for a doctor’s office visit or meeting the deductible and coinsurance amounts.
Unused dollars in a HSA plan rollover year to year while the account value increases through tax deferred earned interest or investment growth. The plans are portable, meaning the contributions are not lost should coverage be discontinued with the insurance company. You own all deposits and can name a beneficiary for the accumulated value at passing.
Closing A Health Savings Account
Should you later cancel your health insurance or no longer need a HSA plan, the accumulated funds can be withdrawn. All funds that have not been spent on qualified medical expenses would then be taxed as ordinary income. There would be no IRS penalties however for closing your account and withdrawing all funds.
Once age 65 is reached most consumers discontinue their individual and/or family health insurance plans, opt into Medicare and purchase Medicare supplement insurance. Funds remaining in a HSA would not need to be withdrawn lump sum; rather they could used for other qualifying medical expenses not covered by Medicare.
2012 HSA Contribution Limits And Maximums
There are only a few criteria that must be met in order to participate in a HSA. Namely, individuals or employees must be enrolled in a qualified high deductible health insurance plan. Such plans will be clearly advertised as HSA compatible.
An annual deductible of at least $1,200 for an individual policy or $2,400 for a family plan must be selected. Then the insured(s) can choose to establish a health savings account at the financial institution of their choice.
The yearly contribution maximum for 2012 is $3,100 for individual coverage and $6,250 for family plans.
Yearly Contribution Methods And Maintenance
Recently passed legislation allows for lump sum contributions by account holders up to the above listed maximums. Deposits are no longer limited by the insurance deductible selected.
Additionally, consumers may transfer tax deferred dollars from a qualified plan like an IRA (Individual Retirement Account) in order to immediately fund an HSA. Employer plans will allow account owners a one time transfer from a FSA or HRA plan.
Health Savings Accounts are designed to be easily maintained and operated. HSA specific websites are setup by the insurance providers so that account holders can manage their deposits and expenditures online. In addition, many insurance companies issue checkbooks and/or credit cards to the insured that draw directly from the account.
Contact us today for your HSA health insurance quotes!