About Health Savings AccountsWhat is a Health Savings Account? A Health Savings Account (HSA) is used to pay for healthcare costs like office visits, prescription drugs, hospitalization and glasses or contact lenses. HSAs allow account holders to pay for medical expenses on a tax free basis because the funds are deposited into the HSA account on a pre-tax or tax-deductible basis. Similar to a 401(K) plan, HSA contributions will reduce taxable income. Banks, insurance companies and third party administrators can establish HSA accounts. The amount of money that can be contributed to an HSA account is limited each year. At the end of each year, any money remaining in the account will rollover to be used for future healthcare needs. Funds deposited into the HSA can be conveniently accessed through the use of a debit card or check. What is a High-Deductible Health Plan? In order to qualify for an HSA you also must have enrolled in a high-deductible health insurance plan. Although your annual deductibles with these plans will be higher than typical health coverage, the money from the HSA can be used for qualified medical expenditures that would normally be applied toward your plan's deductible. Depending on how much you have invested in your HSA, any out-of-pocket expenses may be minimal before your health insurance starts paying the benefits. If you are not already enrolled in a high-deductible health plan that qualifies for the HSA program, Aetna-Texas-Health-Insurance.com can provide information about the qualified health plans offered by Aetna. Click here for a high deductible health plan quote. More On Health Savings Accounts |
