Health savings accounts (HSAs) are designed to help people save money for future medical expenses. To qualify for an HSA a person must have a high deductible plan. The idea behind HSAs is that when an individual pays out-of-pocket for care, they will spend their money more wisely. An HSA coupled with a high deductible plan is ideal for individuals who don’t anticipate having high medical expenses in the coming year(s).
Here are some of the advantages of an HSA:
- The money you deposit into an HSA is tax-exempt
- You control the money in the account, and you won’t lose employer contributions to your HSA if you change jobs.
- Unused funds roll over from one year to the next
- You control how much money you set aside for health expenses
- The money in an HSA account can be used for many over-the-counter medications and medical supplies
The disadvantage of an HSA is that it can be challenging to predict how much money you’ll need for medical expenses in any given year, and if you take money out of the account for non-medical purposes, that money becomes taxable.
HSAs can be an excellent way to manage health care costs and keep health insurance premiums down, as high-deductible plans typically have lower premiums than those with lower deductibles. Benefit Packages offers expert advice on HSAs and has been helping Californians find comprehensive benefit plans for over 20 years. Contact us today at 1-800-356-3615 or visit our website for more information about HSAS and health insurance policies with trusted carriers like Anthem Blue Cross of California.