HSA contributions for 2012 – It’s not too late !

If you owned an HSA eligible high deductible health insurance plan (HDHP) in 2012, don’t forget to make your Health Savings Account contribution for the 2012 tax year, by April 15th 2013, to save on your taxes owed or to get a larger tax refund.   In addition to the tax benefits, it also forces you to save for your future medical, dental and vision expenses.  2012 contribution maximums are $3100 for an individual, and $6250 for a family (2 or more).   Remember, you must pro-rate the amount based on the total number of FULL months you owned the HDHP.  For example, if the effective date...

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HSA Becomes More Attractive in 2013

Starting in 2013, Health Savings Accounts (HSA’s) become a lot more attractive due to a couple changes that take effect this year which are part of the new health care reform law (PPACA). 1.  Flexible Spending Accounts (FSA’s), which are “use it or lose it” type of account, are now capped at $2500 (down from the current $5000 limit) 2.  The percentage level where you can itemize your out of pocket expenses on Schedule A for medical, dental and vision expenses increases from 7.5% up to 10% of your adjusted gross income (AGI) Both of these new rules hit the middle class...

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HSA’s and Maternity Coverage

I’m pregnant, and I own an HSA Health Savings Account plan.  What do I do? First, congratulations on your baby!  Planning financially is the one item that most think about first. Employer Group HSA plans:  if you are on a employer HSA plan, maternity is most likely covered and subject to the deductible. Be sure you stay in network, and open up a HSA bank account at some institution immediately.  Only expenses after you set up the HSA account are eligible for a tax deduction.  You will probably hit your deductible, and the entire amount may be tax deductible depending on the deductible...

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Low balance in your HSA? Need to see a doctor?

Everyone needs health care at some point in time, but not everyone has prepared accordingly, or in a financial position to take care of surprise expenses. This often occurs with people who own Health Savings Accounts.  The good news is that if you understand the tools you have access to with your HSA plan, you can recover quickly if you are HSA educated! Here is the game plan if you find yourself in this predicament: First, take care of your health.  Go to the doctor, stay in network, and you’ll get the network discounted price. Have the doctor send a claim to the insurance company, it...

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Why an HSA health plan is better than a Copay plan

Why is a Health Savings Account health insurance plan better than a copay plan? An HSA is a better plan if you’re focused on your out of pocket maximum. If so, an HSA cannot be beat. The reason is because you have a defined out of pocket maximum. With your typical PPO Copay plan, you’ll have a deductible, 80/20 coinsurance, plus doctor copays, Rx deductible and Rx copays. But, COPAYS are sometimes forever. Let’s imagine a broken back, surgery, pain meds and 3 X a week physical therapy for 6 months. Copays will rack up over $400/mo or more, they rarely go towards the...

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HSA Education for Employees

As I was updating the HSAconsumer.com website, I came across this article discussing the need to “engage” employees in leveraging their HSA Health Savings Account.  This is exactly the whole purpose of our website…..to engage and educate employees who have questions.  How do I save in an HSA? How do I spend my HSA money correctly? HSAconsumer.com was developed to answer these questions for no charge, and complement the HSA educational need that’s expressed in the article below. But HSA’s are a complicated product, and nobody has enough time in the day to become...

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