Posts Tagged ‘HSA’

About Health Savings Accounts

Medical costs and health insurance premiums had been rising out of control and, congress needed to do something to enable the average individual and family to continue to afford heath care coverage. The HSA, or Health Savings Account was the answer. The idea  for the HSA was developed in December of 2003 and implemented January 1, 2004.

A health Savings Account plan works alongside your standard, high deductible health insurance policy, so for Charleston residents wishing to lower their monthly health insurance premiums, while simultaneously increasing control of their money and health care expenditures, the Health Savings Account may be the perfect solution.

Here’s some more information to help you decide.

A Health Savings Account or HSA is like having a regular bank account, but works, as mentioned, with a standard, high-deductible, individual, or family health-care insurance plan. The money put into your HSA can be used to pay for many of your health care expenses, including; money you might need before your actual health insurance coverage begins to make payments (deductible). It can also be used for paying health care expenses not covered by your existing health insurance plan.

You will never lose any money in your HSA., Whatever balance remains annually is simply rolled over. With an HSA, you’ll have control over how to spend your money and how best to put it to work. You can use it for health care expenses including prescription glasses, any extra trips to the pharmacy, or unexpected medication your health insurance plan may not fully cover and many over-the-counter items you not normally regarded as legitimate medical expenses.

Since the money in your HSA earns interest in the same way as any other bank account, it allows you to plan for your future health care needs through interest earnings.

The money in your account is yours. Even if you change your job or health plan, the money in your HSA account remains and continues to earn interest.. As long as you use the money from your HSA account for eligible expenses as defined by the IRS, this money in your HSA account is tax-free! Your HSA dollars will also earn tax-free interest and there’s no minimum balance amount required.

While the Health Savings Account concept did not solve all of the problems inherent in out health care crisis, the HSA does provide relief and a manageable alternative for millions of residents of South Carolina.