Explaining a Health Savings Account

Health insurance is an item every person needs, especially if they have a family. Unfortunately, many people don’t have adequate medical benefits in cases of serious illness. Even with health insurance, it can cost thousands to properly care for you and your family. If this is the case, you might consider HSAs. But, just what is a Health Savings Account?

A health savings account is a way to help pay for current medical costs, as well as save for any future medical costs, and are tax free. They are set up to be used along with your current family health insurance plans, as long as you have a “high deductible” policy. An individual must have a minimum deductible of $1100, or $2200 for families.  And unlike a PPO, it is a true family deductible.  No two-member maximum which can become hugely expensive if two-members come close but don’t hit the deductible. 

During 2009, you can contribute a maximum of $3,000 to a health savings account on an individual policy, or $5,950 for a family policy. The best part about HSAs is that you get to decide how to expense the money and can even invest it in order to help it grow. In addition, if you carry a normal low deductible policy, but drop that and replace it with a high deductible policy, your maximum contribution will be pro rated to however many months are left in that year.

Whether you’re living alone, or are the head of a family, medical insurance is a must. Now, there is help in making sure that you can cover any medical bills that may come up. You’ll also know how to answer the question, “What Is A Health Savings Account”?

For more information visit www.health-savings-plans.net