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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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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Time to Make Your 2011 HSA Contribution

I started preparing my taxes for the 2011 tax year, and just dropped my $6150 family HSA contribution for 2011 in the mail.  Yes, even though it’s March of 2012, I can still contribute for 2011 tax year up until April 15th, 2012 (April 17th actually this year).  It must be in the bank custodians’ hands by that date, postmarked dates don’t count. You also must have had a HDHP health insurance plan in place by Nov 30th, 2011 and plan to hold onto the plan for 12 consecutive months. I look forward this one of only a few tax deductions I get each year to lower my tax bill.  I...

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Health Savings Accounts-2012 Indexed Amounts

Medical inflation continues to rise, so the IRS has rolled out 2012 Inflation adjustments for HSA Health Savings Account.  Maximum allowable 2012 contributions for HSA’s are raised to $3100 (individual), and $6250 for family.  Accordingly, out of pocket maximums for HSA qualified health plans have also risen. Visit our HSA Education page for 2011 contribution information.   Health Savings Accounts – 2012 Indexed Amounts (U.S. Department of the Treasury) 5/16/2011 Part III Administrative, Procedural, and Miscellaneous 26 CFR 601.602: Tax forms and instructions. (Also: Part 1,...

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