Review | What is a Health Savings Account?

What is a Health Savings Account?

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Health insurance is something everybody needs, especially if they have a family. Sadly, numerous people don’t have adequate medical insurance in cases of serious illness. Even with health insurance, it can cost hundreds of dollars to properly care for you and your family. If this is the case, you might consider HSAs. But, just what is a Health Savings Account?

Health Savings Accounts are a way to help pay for current medical costs, as well as save for any future medical bills, and are tax free. They are set up to be used along with your current family health insurance plans, as long as you have a “high deductible” policy. An individual must have a minimum deductible of $1100, or $2200 for families.  And unlike a PPO, it is a true family deductible.  No two-member maximum which can become quite expensive if two-members come close but don’t hit the deductible. 

For a family policy up to $5,950 can be contributed and for a single policy up to $3000 in 2009 . The best part about HSAs is that you get to determine how to use the money and can even invest it in order to help it grow. In addition, if you carry a normal low deductible policy, but drop that and replace it with a high deductible policy, your maximum contribution will be pro rated to however many months are remaining in that year.

Whether you’re living alone, or are the head of a family, medical insurance is a must. Now, there is help in making sure that you can cover any medical issues that may come up. You can also answer the question, “What Is A Health Savings Account”?

For more information visit www.health-savings-plans.net

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