FAQ
A: An HSA qualified plan has two components; 1) an HDHP (High Deductible Health Plan) that provides your medical coverage (issued by an insurance company) and 2) an optional HSA (Health Savings Account) that allows you to use tax-advantaged dollars to pay for qualified health care expenses. More information can be found at
https://www.1hsa.com/ Because you are receiving significantly lower premiums in exchange for higher "up-front" costs, I highly recommended supplementing your HDHP with an inexpensive accident indemnity plan at a level that will cover the plan deductible. This will eliminate your health plan related expenses in the event of injury or accident. Coverage can be acquired by visiting
http://www.gacquote.com/quote_result.php?quote=24hour&AgentID=3626
A: HSA plans typically have much lower premiums than their copay / traditional plan counterparts. This is because the client pays for all incurred medical expenses first as part of the deductible. Once the deductible is satisfied, the insurer then takes over 100% of covered expenses. A strong feature is that all covered expenses, medical and Rx are being applied to the deductible. Once met, both are covered 100%. Most tradtional plans do not apply copays or Rx costs to your out of pocket maximum and require you to continue with these expenses even once deductibles and coinsurance maximums are satisfied.
A: No. You are not required to open an HSA, however, money placed in to the account can be taken as an "above the line deduction" and money removed from the account for qualified medical expenses remains tax free. This includes expenses otherwise covered by your health plan such as dental, vision and orthodontia. In addtion, many HSA accounts earn interest that continues to accumualte tax deferred. To open an account, visit
https://www.1hsa.com/ and select the electronic enrollment link to begin. On P.4 enter Roger Johnston in the broker search box and select me as your agent.
A: No. The money in your HSA is yours to use as you see fit, however, withdrawls for anything other than a qualified medical expense are subject to income tax and a 10% early withdrawl penalty
(consult your tax professional for full details). A more complete list of qualified expenses can be found at https://www.1hsa.com/qualifiedmedicalexpenses.html
A: Unused contributions to your HSA account roll over from one year to the next. There are no "use it or lose it" stipulations.
A: Money placed in to an HSA can be used tax free to cover qualified medical expenses of all of your dependents even if they are not covered by an HSA qualified plan. For example, your spouse is covered by a traditional employer group plan whilst you are covered by an HSA qualified plan. Money in your HSA account can be used to cover your spouses qualified medical expenses such as office copays, deductibles and coinsurance.
A: Contribution amounts tend to change annually to reflect changes in inflation and health care costs. Currently the single contribution maximum for 2012 is $3,100 and the family amount is $6,250.
A: No. Contributions are limited to the family aggreagate amount. If your spouse has contributed $4,000 for the tax year then you are entitled to contribute and deduct the remaining amount up to the current family maximum. Conversely, if only one person in the household is covered by a qualifying plan then you may only contribute up to the single coverage annual maximum.
A: Yes - you are entitled to make "catch up" contributions for the year in which you became covered by your policy (if before Dec 1). Also, those becoming eligible after age 55 are entitled to make a catch up contribution of an addtional $1,000/yr.