What is an HSA?

As the medical costs escalated and health insurance premiums correspondingly increased with no end in sight, innovative strategies needed to be developed.

• Premium Savings Typically between 30 percent to 70 percent a month
• Tax Advantages
• Invest Opportunity

Simply: an HSA is a component of a high deductible health plan, a special interest-baring, tax free bank account which you may use to pay for minor medical expenses, from prescriptions to doctor visits, from over the counter drugs to vision care.

All expenditures are tax deductible and premiums to the insurance company are subsequently reduced, as their liability for the lesser medial expenses are eliminated.

The insurance company is responsible for paying out on the big things, while you are responsible to pay for the little things through your special tax deferred bank account.

How Does It Work?

Two Parts:

Part A: Consumer purchases low premium high deductible major medical health insurance.

Part B: Consumer opens HSA and deposits savings in tax deductible account. (Covers deductible, co-insurance and out of pocket expenses).

HSA Tax Benefits:

• Contributions are tax deductible going in and coming out.
• Investment income is tax-free
• Qualified withdrawals are tax-free
• Accrue savings from year to year and build a tax-sheltered next egg for future long-term healthcare.

"That makes HSA tax benefits SUPERIOR even to IRAs. With IRAs, the money is taxed either before it goes into the account or as it is taken out" USA Today

Bottom Line: If you are not participating in a HSA Plan, you're paying too much for your health insurance!