Mr. Health Insurance of Maryland

Submitted by Steve Klein

Health Savings Accounts (HSAs) are fairly new to the health care scene and they are growing in popularity.  HSAs are tax favoring savings accounts that work in tandem with high deductible health insurance plans.  With rising health care costs and rising health insurance premiums, the HSAs offer an excellent opportunity to get quality health care with an affordable premium and an amazingly attractive tax advantage!

The objective of any insurance plan, whether it is health insurance, auto insurance, or any other insurance plan is to limit your exposure to risk.  HSAs accomplish this efficiently and at a significant savings in comparison to other health plans.  Plans are available for self employed as well as salaried individuals and families.  Here is how it works.

The client purchases a low premium high deductible major medical health plan with a minimum deductible of $1,100 for individuals and $2,200 for families.  Next, the client opens an account that is designated as the HSA savings account.  Money is deposited in this account which is 100% tax deductible.  The funds can be spent to pay for dour deductible, co-insurance, and any other health related expenses including over the counter medications.

The tax benefits are amazing because contributions are tax deductible going in and coming out.  Interest earned on the account is tax free.  All qualified withdrawals are tax free.  As you accrue savings from year to year, you are building a tax sheltered nest egg for future long term health care.

I make the analogy that the HSA is basically an IRA for health care but better!  According to USA Today, “HSAs offer tax benefits that are SUPERIOR even to IRAs.  With IRAs the money is taxed either before going into the account or taken out.”  In fact, consumers are allowed to make a one time tax free transfer of funds from their IRA to their HSA account.

Here is the bottom line.  If you are not participating in a Health Savings Account (HSAs), you are paying too much for your health insurance!  We are full service, no charge at www.mrhealthinsuranceofmaryland.com.  Contact us on the web or at 866-654-4844 to find out more about these outstanding plans.

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