Are HSAs Recommended?

When it comes to purchasing health insurance it can be a difficult and tough road to travel. There are so many options and benefits you can obtain. What is a PPO or an HMO? What exactly is an HSA, and is it right for me?

Health Savings Account

A health savings account, or HSA, is, from a bank or savings perspective, a type of account you set up with a participating bank with designation for health-related expenses only. The money you put in to this account is tax-free but cannot be used on anything but health-related things such as doctor’s visits, procedures, prescriptions, dental and vision services, etc. Health Savings Account funds cannot be used for premiums.

Is an HSA right for you?

Would you rather your money be set-aside on a pre-tax basis? The plans will normally have higher deductibles but lower premiums, according to HealthCare.Gov. These pre-taxed funds can be used to pay for costs before you reach your deductible. In many cases, using this type of account can lower health care costs. All the funds that are left unspent will roll over year-to-year. In some instances you can earn interest on the money put into an HSA.

If the tax benefits are of significant importance to you then an HSA may be your best option for health coverage.

If you fall under a special circumstances category for health insurance coverage and are looking for more information for gaining or changing coverage give us a call today, 352-371-7977.