Comprehensive & Affordable
Health Savings Account
With such a confusing insurance landscape, it’s hard to tell which plan is right for you. Our experienced team of agents will help you decide if you qualify for and would benefit from a Health Savings Account. Our expert advice is always free.
What is a Health Savings Account?
A Health Savings Account, commonly referred to as an HSA, is a medical savings account designed to help people with high-deductible insurance plans pay for out-of-pocket costs not covered by their insurance. Deposits in an HSA are not subject to taxes at the time of deposit and roll over to the next year. If a qualifying medical expense arises, money from an HSA can be used, regardless of how long it has been in the account.
HSA can also function similarly to a retirement account as policyholders can withdraw funds from the account after retirement age has been reached. If funds are withdrawn prior to retirement age, a penalty will be assessed.
Facts, Questions, and Answers about HSAs
What are the benefits of an HSA?
● Tax benefits on contributions, earnings, and distributions
● Funds used for approved medical expenses are always tax-free even if the High Deductible Health Plan coverage ends
● Account is portable so that if you leave an employer or Health Plan your account goes with you.
● It is a long-term investment opportunity
● H.S.A.’s encourage savings for future health care expenses.
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Is a Health Savings Account the same as a Flexible Spending Arrangements (FSA) or a Health Reimbursement Arrangement (HRA)?
No, generally HSA is the only type of health saving plan that can roll over from year to year. It also allows the enrollee to take the account with them regardless of where the enrollee goes to work.
*See the chart below for further comparison
What preventative care benefits can a plan offer?
● Periodic health evaluations
● Routine prenatal and well-child care
● Immunizations
● Tobacco cessation programs
● Obesity weight loss programs
● Screening services
How much money can I put into a Health Savings Account?
For 2017, these amounts increase to $3,400 for single HDHP coverage and $6,750 for family HDHP coverage. These amounts will be increased for inflation in future years
Are there income limits on who can have an HSA account?
No income limits affect eligibility. However, if you don’t file a federal income tax return, you won’t receive all the tax benefits
Who can contribute to a HSA?
● Accountholder
● Individual
● Self-Employed
● Employee
● Employer
What does an HSA cover?
● Routine Medical visits
● Treatment and diagnosis of disease or ailment
● Prescriptions drugs
● Some non-prescription drugs
● Eye care including glasses, contacts
● Dental care including braces and dentures
● COBRA premiums
● Acupuncture
● Braille Books
● Midwife services
● Transportation costs associated with healthcare
● Seeing-eye dogs
● Qualified long term care services
When can distributions be taken from an HSA?
● HSA dollars can always be used to pay for qualified expenses on a tax-free basis, regardless of age or healthcare coverage
● If HDHP coverage ends, contributions cannot be made to an HSA, but distributions to pay for qualified expenses are always allowed.
● If reimbursing expenses from previous years, sufficient records must be maintained to prove the expense was not previously reimbursed.
● HSA dollars can be withdrawn for any non-qualified expense prior to age 65, subject to a 10% penalty and regular income tax.
● After age 65, withdrawals can be made to pay for any non-qualified expense, subject to regular income tax
Tax Treatment and Advantages for Employees/Accountholders
● Contributions are either pre-tax through a cafeteria plan (via paycheck) or tax-deductible
● Earnings
● Interest and investment income are also tax-free or tax-deferred
● HSAs grow in the same tax-deferred manner as IRAs
● Distributions
● Withdrawals for qualified medical expenses are always tax-free. After age 65, funds may be withdrawn for any reason without penalty, subject to regular income tax.
How do I set up a Health Savings Account?
Our team of experts at Murray Insurance has been helping Floridians navigate the confusing Health Savings Account market for 30 years. Contact us to request advice from one of our experienced agents.
We Can Help You Find the Right Policy
Instead of trying to navigate the confusing insurance marketplace alone, contact us today to request help from our experienced team of agents. We understand the ins and outs of the industry and will be able to help you find the health savings account that’s right for you and your family. Oh, and our expert advice is always free.
Step 1: Contact an Agent
Our expert team of agents is awaiting your phone call. We have served over 150,000 Floridians, like you, in the past 30 years.
Step 2: Compare Plans
Your agent will work with you, explaining all of your options and giving their expert advice to find the perfect plan that fits all of your needs.
Step 3: Finalize Your Policy
In one phone call, we’ll finalize your policy.
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