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HSA Policies

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Health Saving Accounts & Qualified Health Plans

100% COVERAGE ~ ½ THE PREMIUM

A properly funded Health Saving Account (HSA) and insurance policy can achieve this and leave you money in the bank year after year.

The time is now to take control of your healthcare costs.

Key Benefits to HSA Policies

HSA qualified medical insurance premiums typically cost less

HSAs make coverage simple. One family deductible and a savings account to pay the small health care needs.

HSAs help you save tax-free. Instead of so much of your money going for premiums, you build savings year after year. 100% tax deductible.

How would you like to have “money in the bank” every year you don’t have a major medical claim?

That’s one of the advantages of an HSA, Health Savings Account, along with a Qualified Major Medical Insurance Plan.

If you have a fairly healthy medical history, you might want to consider an HSA. You could save thousands per year.

Below is the basic concept of an HSA and some frequently asked question.

What is a Health Savings Account (HSA) ? ~ An HSA is a combination of high deductible health insurance with a savings / checking account. The money saved is never taxed when used to pay for qualified medical expenses.

Why a High Deductible ? ~ To reap the benefits of an HSA, the law requires the account be in conjunction with a high deductible health plan. These plans cost less then traditional low deductible plans, HMOs and POS plans.

How does the HSA account work ? The money saved buying a high deductible plan is deposited into a tax-favored savings account. This money is used to pay for the deductible with tax-free dollars. Once you reach your deductible, you no longer dip into your account. The insurance starts paying for covered expenses. The money left over at the end of the year is yours.

What are the benefits of an HSA ? ~ First dollar: Savings can be used for covered expenses as well as dental and vision. Security: Savings will reduce or eliminate your personal out of pocket exposure. Pool of Money: The unspent portion of the HSA remains in the account earning tax-deferred interest. The deposits are tax-deductible off your gross income as well.

What are the Health Care Benefits ? ~ One deductible per family. 100% coverage of eligible expenses after the deductible is met. This includes preventive care and prescription drugs.

What are the Tax benefits? ~ Basically there are three: 1) Cash contributions during the tax year to an HSA are not included in your federal gross income. It's "Tax Free". 2) Interest earning accumulates tax-deferred. 3) Withdrawals from an HSA for "qualified medical expenses" are free from federal income tax. It's a "win, win, win" situation.

Do I have to open an HSA? ~ No. If you just want to purchase the high deductible health plan, you can. You can set up an HSA in the future should you decide to.

What happens to my HSA account if I die? ~ It becomes your surviving spouse's HSA, goes to your named beneficiary or is included in your estate's federal gross income.

Consider this: Last year the “Jones” family was paying $925 per month for their HMO. They changed to an HSA and reduced their total premium to $550 per month. $285 of the $550 was going into the savings account. At the end of the year the account had a $2600 balance. They had spent approximately $800 on medical expenses. They now have the option to reduce their monthly outlay or continue maximum contributions. Should they have reached the family deductible, $3400, they would have depleted the account; however, the insurance company would have paid 100% of the medical expenses thereafter. Still a “win - win” situation considering they saved $4500.00 in premium by not keeping their HMO.

DISCLAIMER: The above information is NOT to be considered tax advise. Consult an accountant. The above information is NOT the outline of any particular insurance company. Additional information is available on the Individual Health Plans page and a complete outline of coverage is detailed in each carrier's brochure. ALHDIA is an independent agency marketing for several major health insurance companies.

Read more about HSAs at > ALHDIA News Page

Please call for a free quote and consultation. (302) 477-1557.

Please call for a free quote and consultation

American Life, Health & Disability Insurance Agency is an independent agency incorporated as ALHDIA.

Delaware Department of insurance number 124761. Doing business as ALHDIA. Pennsylvania number 94432. Maryland number NPI109555.