Health Savings Accounts (HSA)

Health Savings Account Teleseminar - Friday, Feb 12th

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Health Savings Accounts are simple and easy to understand           

Health Savings Account is a tax-favored savings account combined with a qualifying high-deductible health insurance plan.  By allowing you to deposit tax-deductible funds into a health savings account that you can use to cover medical costs, Health Savings Accounts enable you to take control of your own health care decisions.  One of the key aspects to health savings accounts is a system that is responsive primarily to individual consumers, rather than to third-party payers. This concept is known as consumer driven health care.

First, you must have a high-deductible health insurance plan that qualifies to be partnered with a Health Savings Account.  These plans are available through various insurance companies, depending upon what part of the country you live.  The plans are all similar in the fact that they have deductibles between $1,200 and $5,950 for singles, and between $2,400 and $11,900 for families.

Once your insurance policy has become effective, you may begin to fund your Health Savings Account.

Health Savings Accounts allow you to legally avoid federal income tax by depositing up to $3,050 for singles or $6,150 for families, into your Health Savings Account.  Whatever you deposit into your account up to April 15, 2011 is an "above the line" tax deduction for your 2010 taxes, meaning you get a federal income tax deduction for money you put in even if you take the standard deduction and don’t itemize deductions.  If your employer makes a Health Savings Account contribution for you, it is “excluded” from income, and not subject to any income tax or FICA.  Either way, this will immediately reduce your federal income tax due for the year.  Most states also allow you to take a state income tax deduction for HSA contributions.  To see if your state offers tax deductions, please see our HSA State Income Tax page.

On this site you will find thorough information on Health Savings Accounts, HSA trustees and administrators, and instant quotes on available HSA-qualified high deductible health insurance plans.

Please note: To obtain the maximum tax benefit from your Health Savings Account in 2011 as well as lock in 2010 rates, you must have your HSA-qualified insurance plan effective no later than December 1st.

Health Savings Accounts in the News

Alabama Legislator Hopes to Offer Pre-tax Health Savings Accounts
An Alabama legislature hopes to create tax-free Health Savings Account options for Alabama residents. According to Federal laws, families and individuals can have Health Savings Accounts that help them reduce their annual health care costs and tax burdens. However, the state of Alabama does not offer its residents tax-free Health Savings Accounts. Rep. Greg Canfield (R-Vestavia Hills) introduced a new bill to the Alabama House of Representatives on January 12 that would allow individuals and families in Alabama to deposit their pre-tax earnings into a Health Savings Accounts to help cover qualifying medical expenses.

An Overview of the Aetna Health Savings Account Plan
If you’ve never heard of a Health Savings Account, then it’s time to take a look at this increasingly popular health insurance plan option that has become available for Americans and their families. Aetna is one of the many health insurance companies that offers the Health Savings Account option. The Aetna Health Savings Account is similar to its HealthNow PPO and Aetna PPO Plans. However, while the Health Savings Account option helps many Americans save a significant amount of money each year off of the cost of their healthcare expenses, there are some important things that everyone will want to know about before enrolling in a Health Savings Account plan.

How a Health Savings Account Can Help to Protect Your Finances
If you have health insurance, you might be surprised to learn that a starling 16.6% of American adults are still uninsured, despite the high degree of attention that has been given to health insurance issues in the U.S. lately. Many American adults without health insurance are put into a tricky situation when they have a catastrophic injury or illness and are then stuck with an expensive emergency room or ICU bill. According to many, living without health insurance is a high stakes gamble that too many Americans make every day.

Why Enroll in a Health Savings Account?
To Protect Your Health and Wealth! Many Americans are struggling to keep up with the high cost of healthcare. Not only are health insurance premiums skyrocketing, but many employers are reducing their employee benefit (or even cutting healthcare coverage altogether) in an effort to reduce their costs. Moreover, many healthcare services are not even covered at all by health insurance plans, even when health insurance plan members pay for their insurance. So how can Americans protect themselves, their wallets, and their healthcare?

Are Health Savings Accounts Better than Flexible Spending Accounts?
Are you trying to get a handle on the many different employer-sponsored healthcare options that are currently available? If so, you’re not alone. In fact, we get many questions about the difference between two very popular healthcare plan options: flexible spending accounts and Health Savings Accounts. These two plans are similar, but Health Savings Accounts tend to give employees more control and financial benefits than the flexible spending account option. Here’s what you need to know about Health Savings Accounts:

Blue Cross Blue Shield Banks on Health Savings Account Plans
Blue Cross Blue Shield members now have their own bank, but it won't help them if they're looking for an auto loan or a good rate on a CD. Blue Healthcare Bank's sole purpose is handling health care-related banking services, such as Health Savings Accounts. The bank is being set up by the Blue Cross and Blue Shield Association members, including Blue Cross of Idaho, one of the first four members to work with the bank.

J.P. Morgan Shares Best Practices for Implementing a Health Savings Account Program (Business Wire via Yahoo! Finance)
NEW YORK----J.P. Morgan today issued a report titled "Best Practices for Implementing a Health Savings Account Program" providing a step-by-step guide for employers who want to offer an HSA program to employees.

Only 59% Aware of Health Savings Accounts (Financial Planning.com)
Six years after health savings accounts were introduced, only 59% of the population has heard of them, only half of these people actually understand them, and only 14% of the overall population own them, Guardian Life Insurance found in its Spotlight on Consumer-Driven Health Plans Survey.

Guardian Survey Reveals Widespread Lack of Understanding of Health Savings Accounts (redOrbit)
National Study by Guardian Life Insurance Identifies Key Motivators for Participation NEW YORK, June 3 /PRNewswire/ -- The Guardian Life Insurance Company of America (Guardian), a leading provider of employee benefits for small and mid-sized companies, today announced the results of a comprehensive survey on consumers' attitudes and beliefs regarding healthcare coverage, including health savings ...

Sterling HSA and Medical Cost Advocate Announce Partnership to Help Lower Consumer Healthcare Costs (dBusinessNews.com)
Oakland, CA and Wyckoff, NJ, June 2, 2009 – Sterling HSA Ò , a company specializing in administering health savings accounts (HSAs) and Medical Cost Advocate Ò , a company with expertise in negotiating health care costs for consumers, have teamed up to provide Sterling HSA account holders with a service to review and negotiate their out-of-pocket medical expenses as another way of advancing ...

What You Should Know About Health Savings Accounts (PRWeb)
Health Savings Accounts (HSAs) were created to help individuals and families prepare for medical expenses and gain a tax advantage in the process. The Federation of American Consumers and Travelers (FACT) has compiled information from a variety of sources in order to help its members, and the public at large, to know whether an HSA is right for them. (PRWeb May 29, 2009) Read the full story at ...

Blue Cross Blue Shield Approved to Start Health Savings Account Bank
Blue Cross Blue Shield has received federal approval to establish a savings bank that will be allowed to administer Health Savings Accounts.  Blue Cross Blue Shield said it had received assent from the Office of Thrift Supervision, a Treasury Department agency, to establish a federally insured savings bank to be based in Utah.  It will be called Blue Healthcare Bank.  Health Savings Accounts can be set up by consumers who have high-deductible insurance plans, and Blue Cross Blue Shield offers some of the most competitive HSA plans on the market.

Humana to Cap Health Savings Account Premiums for More Than One Year
After years of double-digit premium increases for employers providing health plans to workers, Humana and other insurers are trying a different approach: new health savings account plans that cap premium hikes at guaranteed low rates if buyers agree to a multiyear contract and workers absorb increases in deductibles.  Even doctors known to be skeptical of almost anything the health insurance industry suggests say they are intrigued with the health savings account idea - hoping it might be one remedy for unpredictable, rising health care costs.

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