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What Is A Health Savings Account

Health Savings Writer — Wed, 17 Sep 2008 18:15:34 +0000

Health insurance is something everyone needs, especially if they have a family. Unfortunately, many people don’t have adequate medical coverage in cases of serious illness. Even with health insurance, it can cost hundreds of dollars to properly care for you and your family. If this is the case, you might consider a health savings account. But, just what is a Health Savings Account?

A health savings account is a way to help pay for current medical costs, as well as save for any future medical emergencies, and are tax free. They are set up to be used along with your current health insurance, as long as you have a “high deductible” policy. An individual must have a minimum deductible of $1100, or $2200 for families.

You can contribute a maximum of $2,850 to a health savings account on an individual policy, or $5,650 for a family policy. The best part about a health savings account is that you get to decide how to use the money and can even invest it in order to help it grow. Also, if you carry a normal low deductible policy, but drop that and replace it with a high deductible policy, your maximum contribution will be pro rated to however many months are left in that year.

Whether you’re living alone, or are the head of a family, health insurance is a must. Now, there is help in making sure that you can cover any medical issues that may come up. You’ll also know how to answer the question, “What Is A Health Savings Account”?

Health Savings Account Banks

Health Savings Writer — Wed, 17 Sep 2008 18:10:07 +0000

When looking to open a Health Savings Account, you might think that only certain banks will provide the options you’re looking for. The truth of the matter is that you can find Health Savings Account Banks just about anywhere you look. The difference is in what you want in an account. So, what should you look for before settling on a policy?

First and foremost, you need to know what kind of health insurance policy you already have. If you have a low deductible policy, you won’t qualify for a health savings account. In order to quality, you must have a high deductible health insurance policy. The thing is that most high deductible policies are actually less expensive than traditional low deductible types.

Next, you need to sit down and talk to your financial advisor to find if an HSA is right for you and your family, what the current interest rates are, and how much you can add to your account per each month. There are yearly caps on your contributions, as well as catch up rates for those over the age of 55.

As you look for the right Health Savings Account Banks, remember that the money you put into the account is yours to use for medical purposes as you see fit, not how the insurance companies want you too. Get all the facts from your banker before making any decisions. It could take care of you for many years to come. And some day, who knows maybe you’ll be looking for jumbo CD rates.