An HSA is a Health Savings Account, a specific type of savings account that’s available for those enrolled in a high deductible health insurance plan. An HSA can be very beneficial in certain circumstances. If you’ve considered getting an HSA but weren’t sure if it was right for you, the following may help you decide.
Can You Afford to Pay for Your Medical Needs?
For most with a high deductible health insurance plan, the reason behind the decision to go with the plan was limited monthly funds for the premium. This means that the high deductible that must be attained for the plan to kick in on most service is out of reach, so many services must be paid for without benefit of insurance. An HSA can help to bridge the gap and cover these medical expenses.
Would Saving on Taxes Help You?
The money that’s taken from pay and deposited into an HSA isn’t subject to federal income tax. Mitigating the tax burden in this way can make it easier to afford the money that’s going towards the HSA. As long as the account is used only for qualified medical expenses, there will also be no taxes or penalties due when money is withdrawn.
Are You Concerned About Paying for Future Medical Needs?
Money deposited into an HSA rolls over from year to year, so it acts as a long term investment. This can help you to save for your future and ensure that your medical needs are taken care of so that illnesses and chronic conditions don’t take a toll on your financial health. Since most people will encounter some sort of medical issue at some point in their lives, having this buffer can be beneficial.
Do You Have Unique Medical Needs or Preferences?
An HSA can be used to pay for medical options that aren’t covered by most insurance plans. An HSA can be used to pay for things like seeing eye dogs, smoking cessation programs, and weight loss programs. These can promote good health and well being, which may end up saving you money in the long run.
Is a Job Change Expected?
Unlike employer offered health insurance, an HSA can travel with you if you change jobs. This can provide peace of mind as you transition to a new role and set up health insurance with a new employer. If you expect a job change, it may actually be in your best interest to start saving with an HSA.
If you feel that you could benefit from investing in an HSA, call 855-440-2292 and speak to one of our experienced insurance agents today.