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How To Get A Low Cost Health Savings Account Plan

By: Bri

What are Health Savings Accounts?

A Health Savings Account (HSA) is an inexpensive, high-deductible health insurance plan, combined with a tax-deferred savings account. You put money in a savings account to be used toward paying your health insurance deductible (the amount you must pay toward an insurance claim before your insurance will pay).

The money you put into your savings account is tax deductible, and can also be used to pay for health care expenses like prescription drugs, vision care, or dental bills. The money that remains in your account earns interest tax deferred so you don't have to pay taxes on it.

A high-deductible health plan (also known as a catastrophic health insurance plan) is a health insurance plan whereby you pay for the first few thousand dollars of your medical bills, then your insurance company pays the rest.

You control how to spend your HSA and what type of investments to make with the money in your account. If you withdraw money from your HSA for non-medical reasons you're subject to paying taxes on it and a 10% penalty.

Where can I get an HSA?

You can sign up for an HSA with your employer, at your bank, at a credit union, or with an insurance company (see link below). For more information on HSAs and how to set up your account, visit the U.S. Treasury Department's website at: treasury.gov/offices/public-affairs/hsa.

How much do HSAs cost?

You don't purchase an HSA, you purchase a high deductible health insurance plan and put money into your savings account to pay for your deductible and other medical expenses.

Where can I get cheap high deductible health insurance?

To get cheap high deductible health insurance you need to compare rates from different companies. Fortunately, this is easy thanks to the Internet. You can go online to an insurance comparison website, fill out one simple form, then get rate quotes from a number of insurance companies.

By: Brian Stevens