What is a Health Savings Account plan?
A Health Savings Account allows you to set aside money to pay for current and future health expenses. The money you put into your HSA is tax-free, although you have to pay a penalty if you withdraw it for non-medical expenses. You can think of an HSA as a medical IRA. When you have a medical expense, you just pay for it with a check or debit card that automatically pulls money from the plan. And money that you are not using can be earning interest for future use.
How do I enroll in an HSA?
In order to enroll in an HSA, you must first set up a High Deductible Health Plan (HDHP). An HDHP is an inexpensive catastrophic health insurance plan. This type of plan costs less than a traditional insurance plan, freeing up funds to put into the tax-deductible HSA.
An HDHP typically pays nothing for the first several thousand dollars of health expenses you have each year. You pay those expenses out of your Health Savings Account. Once you meet the deductible, the HDHP begins to pay.
You can sign up for an HDHP and an HSA through insurance companies. To find plans that meet your needs, go to an insurance comparison website. There you ll have access to quotes from multiple insurance companies and will be able to choose the best plan for you. The better insurance comparison websites also have insurance professionals on hand to talk with you and answer all your questions about these plans(see link below).
Visit http://www.LowerRateQuotes.com/health-insurance.html or click on the following link to get Health Savings Account plan quotes from top-rated companies and see how much you can save. You can also get more insurance tips there.
The authors, Brian Stevens and Stacey Schifferdecker, have spent 30 years in the insurance and finance industries, and have written a number of articles on finding inexpensive Health Savings Account plans. keira janett
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