With the new rules regarding health insurance, many people are still figuring out how to navigate themselves through the changes. One tool that people are discovering is the Health Savings Account. HSAs are up 25% over the last year, largely because many of the new health insurance options have high deductibles, $1200 + for individuals, twice that for families. Basic wellness services, such as annual physicals usually don’t apply, but aside from that coverage doesn’t begin until you’ve paid the agreed amount of health care costs out of your own pocket. These costs are capped at just under $6000 per year for individuals, and nearly $1200 for families. When the need for medical services presents itself, you don’t want to create even more pressure by scrounging for money to pay the bill.
By putting money into a Health Savings Account, this burden is greatly alleviated. A person is allowed to make a pre-tax contribution into their HSA of just over $3,000 per year. Those over age 55 can contribute an extra $1000, and family contributions are allowed to $6150. Often employers will also kick in $500- $1000 into the HSA as well. Whatever the amount of your annual contribution, the money will rollover from one year to the next, and if it isn’t used it can be transferred into a 401K. Those over 65 are not allowed to make further contributions into the account.
HSAs are good for employees too, because often having an HSA and a high deductible leads people to see out the basic care they need, while taking better care of themselves overall. High deductible plans with accompanying HSA accounts are a good way to save money, but shopping around with the help of an independent Los Angeles insurance agent. At Save-on Health Insurance Services we can access information about health care options and provide you with the quotes that will serve you best. We’ve been serving Los Angeles, California and surrounding area for 20 years, Independent agency, auto home, and health insurance
To learn more about ways to keep your health care costs under control contact Save-on Health Insurance Services today.