Mr. Health Insurance of Maryland

Submitted by: Steve Klein

Health Savings Accounts or HSAs are changing every year as contribution rules and covered benefits evolve and improve. Stay informed on the latest information here on my blog.

For calendar year 2009, the annual limitation on deductions under 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,000 and the annual limitation on deductions under 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $5,950.  This is a slight change from the current year and look for this trend to continue as the government tries to make health insurance more affordable.

For calendar year 2009, a high deductible health plan is defined under 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,150 for self-only coverage or $2,300 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $5,800 for self-only coverage or $11,600 for family coverage.  This is also a slight change from the current year of only $50 a person and $100 for a family.

HSAs are growing very rapidly and for all the right reasons. The purpose of insurance, any type of insurance, is to limit your financial exposure should something unforeseen occur.  HSAs accomplish this very nicely and at a reasonable cost.  HSAs offer premiums of 30% to 50% lower than traditional health plans because you share the risk up front with a higher deductible but you limit your exposure once the deductible is met.

When you factor the significantly lower premium together with the tax advantage of the HSAs, in most cases you will save thousands of dollars without compromising on your health care.  I often call the HSA account “an IRA or 401K for health care” which is a fair analogy.  As the cost of health care continues to rise and insurance premiums follow suit, the HSAs will continue to become a more attractive choice for most Americans.

I am your expert on health plans in Maryland and Virginia.  Call me today at 866-654-4844 for more information on all the plans that are available in our region.  You can also visit me on the web at www.mrinsuranceofmaryland.com where your health is our business.

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