What Is A Health Savings Account

Written by Health Savings Writer on September 17th, 2008

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”?

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