Focus on Savings. with Health Savings Accounts

Transcription

1 Focus on Savings with Health Savings Accounts

2 Health Savings Accounts Putting Your Health Plan to Work for You Find Out How Your Health Plan Can Save You Money The money in your HSA belongs to you and only you, and it is money you keep even if you switch jobs or move. Even better, with your high deductible health plan, you only pay for medical services you use, instead of paying higher premiums for unused coverage. The rest goes into your Health Savings Account and is there when you need it most, whether it be for medical expenses or retirement. Health Savings Accounts, HSAs, are a great way to save money on your healthcare expenses while earning tax-deferred interest HSAs work with high-deductible health plans that can reduce your monthly insurance costs. The money you save can be deposited into an HSA and used for qualifi ed medical expenses, these savings grow tax-deferred and compound interest year-after-year, making it easier than ever to save for retirement. What can HSA s Do for You? LOWER your monthly health plan premiums DEDUCT your HSA contributions from your taxes PAY for medical expenses with your savings tax-deferred GROW your HSA savings every year with tax-deferred interest and investment earnings 2 High-deductible health plans have much lower premiums than traditional plans, giving you unbelievable savings on your health insurance along with the coverage you need to protect your employees and their families. With HSA s you can choose the health care services that are best for you and how to pay for them. HSA savings can also be used for services not routinely covered like laser eye surgery, home health care and more.

3 HSAs Use Your Savings for Medical Expenses or Towards Your Retirement All Tax-Deferred! Save for Retirement The money you contribute to your HSA is rolled over every year to give you a substantial source of retirement income. HSA contributions are tax-deductible and earn interest tax-deferred, you choose how you want to invest it and all the interest and investment earnings also grow tax-deferred. Withdraw Money for Medical Expenses Money can be withdrawn from your HSA savings tax-deferred anytime you need to pay for qualifi ed medical expenses, most of which aren t even covered under traditional health plans. Your pre-tax HSA money can be used to pay for, weight loss programs, over-the-counter medications and even eyeglasses HSA/HDHP Limits HDHP Minimum Deductible Amount * Individual $1,150 $1,200 Family $2,300 $2,400 HDHP Maximum Out-of-Pocket Amount Individual $5,800 $5,950 Family $11,600 $11,900 HSA Statutory Contribution Amount Individual $3,000 $3,050 Family $5,950 $6,150 Catch-Up Contributions $1,000 $1,000 (age 55 or older) The amounts for 2011 as compared to 2009 are shown above. *No amount changes from 2010 to

4 Health Savings Accounts Frequently Asked Questions Q: WHO IS ELIGIBLE FOR AN HSA? A: Anyone enrolled in a high-deductible health plan with no other primary medical coverage can take advantage of the tax benefi ts of an HSA. High-deductible health plans have much lower premiums than traditional health plans and the 2011 Federal requirements set the minimum annual deductible amounts at $1,200 for individuals and $2,400 for family plans and maximums at $5,950 for individual and $11,900 for families. Q: WHAT IS THE ANNUAL ALLOWABLE HSA CONTRIBUTION? A: The maximum contribution allowed by the federal government changes every year, you can contribute over the maximum, however funds over the allowable amount are federally taxable. The allowable amount for 2011 is $3,050 for individuals and $6,150 for families. Q: HOW ARE HSAs SETUP? A: HSAs can be setup by employers or employees throughout the year. Contributions can be made a number of ways, for instance through payroll deduction or a direct deposit. Employers who contribute to employee HSAs can help cover many out-of-pocket expenses such as check-ups, preventive care and emergency services, as well as help employees build a fund for future expenses. Q: HOW DO I MAKE WITHDRAWALS FROM MY HSA? A: Many health plans have now partnered with fi nancial institutions to make using and setting up an HSA quick and easy. You could also look for a plan that provides a debit card and checks for you to use to withdraw money to pay for medical expenses. Q: CAN HSA FUNDS BE USED TO PAY HEALTH INSURANCE PREMIUMS? A: Most health insurance premiums are not qualifi ed expenses, however you can use HSA money to pay for long-term care insurance, COBRA healthcare continuation coverage to cover you if you leave your job and healthcare coverage while you are receiving unemployment compensation. For individuals age 65 or older can use their HSA funds to pay for Medicare Part A or B premiums, Medicare HMO premiums and the employee share of premiums for employer-sponsored health insurance including retiree health insurance. 4

5 Qualified Medical Expenses Below is a basic list of qualifi ed medical expenses that can be paid with an HSA fund: Acupuncture Alcoholism Ambulance Birth Control Pills Braces Childbirth Classes Chiropractors Dental Fees Doctor s Fees Drug Addiction Recovery Drugs-Prescription & Over the Counter* Eyeglasses and Eye Examinations Fees Hearing Aids Hospital Care Insulin Lab Fees Laser Eye Surgery Medicare Parts A and B Nursing Homes for Medical Reasons Oxygen and Oxygen Equipment Psychiatric Care Special Needs Schools Sexual Dysfunction Treatment Therapy Treatments prescribed by a Physician Weight Loss Programs** Wheelchair Vision Correction X-Rays *Effective January 1, 2011, OTC Medicines and drugs will need a prescription to be eligible as tax-free. **Only covered for the treatment of the disease of obesity. 5