(TH) Missouri Health Insurance

(TH) What is a Health Savings Account ?
A Health Savings Account is a type of health insurance plan based on a tax-sheltered savings account similar to an IRA. The savings account is attached to a high deductible health insurance plan. Savings are earmarked for medical expenses and can be withdrawn tax free. Deposits are 100% tax deductible and can easily be used to pay for medical expenses for the small and routine medical expenses with tax free dollars, until your annual health insurance deductible has been met. 

In other words its like the  government is giving you free money to buy health insurance (how much depends on the tax bracket you are in).
We now have HSA health insurance plans with family deductibles rather then the usual per person deductible.

Where do the contributions go ?
Contributions are 100% tax deductible in 2006. What you do not use one year rolls over to the next year and continues to grow interest just like a traditional IRA, but its a Medical or Health related IRA... These tax deductions are in addition to any IRA's you currently have and will not effect those plans in any way. Except of course, to lower your tax bill.

How do I save money on my medical bills?
A traditional Missouri health insurance plan with co-pays, is typically 30 to 70% higher in cost, more restrictive to use than an Health Savings Account and still leave you with out of pocket expenses most people don't expect to pay. An Health Savings Account plan effectively reduces your deductible by your applicable tax bracket. So if you're in a 28% tax bracket, its like receiving a 28% discount on your medical insurance deductible (e.g. An Health Savings Account with a $5,250 family deductible is effectively reduced to $3,780 when you use your tax free money to pay your deductible. Its not great but that's not bad!

How does the Health Savings Account Work?
Take the premiums you currently spend on a high cost traditional individual or group plan and split it into 2 parts. One part will go to pay for the lower cost higher deductible health insurance plan and the other part. "The amount saved" would go into the medical IRA. There is complete flexibility on where the saved part of the premium goes. (We discuss this at application time.)

The savings placed in the Health Savings Account can be used for the small medical expenses until the deductible is met. You will receive a check book and interest will be compounded on your balance in the account. Typically the savings are F.D.I.C. insured.

Should the need arise for a larger medical expense then the higher deductible health plan would kick in and limit the out of pocket expenses to the deductible each year.

What applies to my health insurance deductible?
All covered medical expenses apply to the deductible each year including Doctors office visits, Prescriptions, and any major medical claims. Health Savings Account family plans have one deductible for the entire family. So, all covered medical expenses for the entire family apply to one deductible.

How many deductibles are there?
Typically there is only one family deductible. No more deductibles for each family member. There is only one deductible for the entire family when 2 or more people are covered on the same plan. We typically suggest a 100% co-insurance level to limit the entire out of pocket expenses to the chosen deductible.

What else can the Health Savings Account be used for?
Tax free dollars can also be used to virtually pay for all other medical expenses typically not covered under traditional types of health plans like dental, eyeglasses, contact lenses, Lasic eye surgery and much more. Click here to see examples of both Qualified Medical Expenses and Non-Qualified Medical expenses.

We understand Health Savings Account's and we know how to set them up for simplicity. We know how to explain them to our clients. Call today at 1-800-444-5797 with questions. Or Get A Quote Now.