Health Savings Accounts also known as HSAs are complete health plans exclusively sponsored for employees. The HSAs were created under the federal legislature more than a decade ago and are similar to a savings account in a regular bank or in any insurance company. HSAs also have the advantage of tax medical savings that is available to the regular taxpayers. In case you haven’t faced any circumstances to utilize the credit of your HSA, your balance will be added up in your account even if you continue to add money to it after a year. Health Savings Accounts have a reputation of being owned by smart individuals and employees who opt for it to stand out from their company’s health insurance programs which saves them from the tax funds as well as provides them with high quality healthcare when needed.

Health Savings Accounts can be prove to very beneficial in terms of any medical emergencies that might arise in an employee’s life. Usually, the hospitals and ER prepare a long and heavy charging bill for all the services, equipment, medicine, work and government tax that it becomes difficult to afford it. HSAs cover the medical expenses along with extra medical benefits that the regular health insurances do not allow, so it is preferable if it comes to comparison. In case you do not have a Health Savings Account yet, you need to learn all about its terms, conditions and details before acquiring it so you can choose if it’s the right thing for you or not.

HAS funds are completely qualified to paying for your medical emergencies and expenses at any given time around the year without any tax issues. Before the federal legislation of HSAs, high end and expensive medicines were not valid in HSA accounts without a doctor’s prescription. People who are customers of HAS are highly in favor of the reform that HSAs have brought for the in their medical expenses. It has not only helped them to reduce the cost of high end and expensive medical care but has also contributed towards adding to the efficiency of the health system. HSA encourages individuals to save for their future, to attend any medical emergency which could be heavy on bills without tension, and to utilize the extensive and high-quality care that are being given to the Health Savings Account holders.

 

Eligibility for Health Saving Accounts

For being eligible to the Health Savings Accounts option, you must be a part of the High deductible health insurance plan recognized as HDHP by the government. Health Savings Accounts are for serious individuals who are employed and are regular tax payers. There are different types of plans for HSAs when you decide to make one, for instance the individual account and the family plan ones, all are offered accordingly according to your needs on the condition that you are eligible for HSAs.

 

HSA Process Guide

Health insurance providers offer you the option of HSAs as well as other option, it is upon you to decide what is best according to your job, goals and plans. If you have decided to opt for the HAS offer and qualify the eligibility standards, you can open Health Savings Account of your own. It can be either your own separate account, or a family one that is entirely dependent on your decision and affordability. You are offered to set an amount to add to your Health Savings Account each year, you can also add it in monthly installments. The amount you choose is up to you entirely, excluding a maximum amount that the government has decided to set as a limit for you. These limits are $3400 for individual HSA and $6750 in case of family accounts. You can also opt for automatic transition of balance to your HSA account directly from your salary. After you have made an account you will receive a debit card or checkbooks that is of your HSA account, so you can use it when it comes to spending on medical expenses. It can be on hospitals, checkups, medicines etc. It is important to remember that the hsa account does not cover any of your insurance plans or premium plans to be paid for with HAS funds; it is only valid for medical expenditure.

Health Saving Accounts accumulate your savings in the HSA fund after every year unlike regular banks that have no flexibility in this regard. So, in this case you do not have to worry about losing your money. There is the upper limit of age 65 when crossed by an individual, he or she no longer must contribute to HAS funds and can easily utilize all medical care facilities and even use the money for private medical expenses. But that still does not qualify the HSA funds to be used for non-medical purposes otherwise a penalty tax is made due on that individual.

 

Tax Advantages in HSA

HSAs have many tax benefits over regular medical insurance plans and savings accounts. The most significant benefit of a Heath Saving Account is that the money goes into the account without tax and comes out of the bank without any tax as well. This roughly translates to the fact that during your whole life from the point you have made an HSA account, you are not liable to any tax in terms of medical expenses or to the government. You do not pay any tax money to create the account, you do not pay for adding to the savings or growth of the account and you are not liable to tax when it comes to making withdrawal for medical expenses. This lowers a lot of money for the employees who work hard to meet their needs. Another advantage of Health Savings Accounts is that they can also be invested in stocks, or funds to produce more money altogether. There are various companies in the market that assist you in this work depending on your interests and preferences for investment of money.