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Health
Savings Accounts in Colorado
Health
savings account (HSA) plans can lower your premium, reduce your
income taxes, and allow you to save money for future medical expenses
tax-free. For these reasons, HSA plans have become the most
popular plans we offer.
Here's why Health
Savings Accounts have become so popular:
- An
HSA offers Lower Premiums - Because a health
savings plan in an HSA is paired with a high
deductible health insurance plan, the premium savings for
an HSA can be up to 50% or more compared to a typical low deductible
health insurance plan.
- Tax-Deductible
Contributions - Contributions to an HSA
are tax-deductible. Annual contribution limits for 2009 are capped at $3,000
for individuals and $5,900 for families. IMPORTANT: You must have
your HSA-qualified health insurance in place before December 1 in order to qualify
for a 2009 tax break. You only have , so you should apply as soon as possible.
- Pre-tax
medical expenses - Withdrawals are tax-free
and penalty-free when made for HSA
qualified expenses, including your deductible, birth control
pills, contact lenses and eyeglasses, chiropractors, dental treatment,
fertility treatment, vasectomies, and even travel expenses incurred
while seeking medical care.
- Tax-deferred
growth - Unused funds grow in your account tax-deferred,
and can be withdrawn penalty-free at age 65. There are a
variety of investment options, including savings accounts, money
market accounts, or a wide selection of mutual funds.
For more information
on how HSA plans work, see our brief "How
To" Guide to HSAs.
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The following
Health
Savings Account plans are available in Colorado:
Below are some
interesting articles on Health Savings Accounts:
Health
Savings Accounts allow you to legally avoid federal income tax by saving 100%
of the health plan's deductible, up to $3,000 for singles or $5,900 for families,
into your Health Savings Account. Whatever you deposit into your account
with any HSA
Administrators up to April 15, is an "above the line" tax deduction
for the previous year's income taxes, meaning you get a federal income tax deduction
for money you put in even if you take the standard deduction and don’t itemize
deductions. If your employer makes a Health Savings Account contribution
for you, it is “excluded” from income, and not subject to any income
tax or FICA. Either way, this will immediately reduce your federal income
tax due for the year. Health
Savings Accounts in the News
Insurers and Banks are Creating More Health Savings Accounts as Industry Grows
The money coming from the "health/wealth" market is expected to increase over the coming years: Some experts predict the market could reach $40 billion in the next five years. That's not surprising, as it appears consumers are getting used to transferring money into Health Savings Accounts regularly. In fact, as of the first quarter of 2008, consumers transferred an average $2,674 into their Health Savings Accounts, but spent only $1,216 on average, according to Canopy Financial. That certainly leaves plenty for banks to invest for their purposes.
Using a Health Savings Account to Lower Your Health Insurance Premiums
Health insurance premiums can really put a strain on your budget if you are among the millions of Americans who have to pay for their own coverage. Rates this year alone are expected to increase by at least 8%. With rising premiums and the expensive cost of health care staring you in the face, what can you do to keep your premium at an affordable premium without compromising quality? Using a Health Savings Accounts is a great way to start.
Here are six ways you can lower your health insurance costs while still protecting yourself and your family:
Increasing Number of California Employers Offering Health Savings Accounts
The dominance of managed care in the California market led many benefits experts to doubt if Health Savings Accounts would gain much traction there.
But a recent survey by the California HealthCare Foundation has found that 38% of employers in California now offer Health Savings Account plans to their employees, up from 18% in 2007.
Health Savings Account Balances Grow Significantly
Canopy Financial, a pioneer in innovative healthcare banking technology solutions that connect healthcare and financial services, has announced the results of their Health Savings Account (HSA) Market Report for Q2'08.
Canopy, whose industry leading HealthDirect and CareGain platforms serve as the core Health Savings Account management and administration backend for some of the largest banks and HSA plans respectively, collects and aggregates a wide range of statistics related to actual HSA usage.
Doctors Still Need To Learn About Health Savings Accounts
A new survey has found that few doctors are adequately prepared to help patients navigate newer, so-called "consumer-directed" health plans.
The plans, which are meant to shift more responsibility for health care decisions to the individual patient, often come with high deductibles and include a Health Savings Account.
But 43 percent of doctors said they have heard little, if anything, about Health Savings Accounts, and less than half (48 percent) feel ready to discuss medical budgeting with their patients.
Comerica Bank Introduces Health Savings Account
Comerica Bank's business customers can now offer their employees an affordable option for managing their health care expenses with Comerica HealthReserve, a Health Savings Account (HSA). Comerica HealthReserve HSA is also available to any individuals with high-deductible heath insurance coverage.
"With healthcare costs continuing to outpace inflation, the Comerica HealthReserve HSA enables us to offer our business customers a chance to lower their expenses while helping their employees," said Cassandra McKinney, director of Retail Product and Sales Management for Comerica Bank.
BBB Advice on Health Savings Accounts
Rising healthcare costs are forcing small business owners to decide whether or not they can afford to provide health coverage for their employees. Some employers are choosing to contribute to Health Savings Accounts (HSA) for employees as an alternative to paying for health insurance, and Better Business Bureau is providing guidance for small business owners on whether Health Savings Accounts could be a viable option for their company.
According to a recently released Kaiser Family Foundation study, in 2008 employer-sponsored health insurance for a family cost an average of $12,680 - a five percent increase from 2007 - with one-fourth of that cost paid by employers...
Health Savings Account Enrollment Spans All Income Groups
The majority of UnitedHealthcare customers with Health Savings Accounts (HSA) are depositing money into the accounts and accumulating balances, regardless of their income level, age or employer size.
UnitedHealthcare analyzed more than 200,000 of its 1.4 million members enrolled in an HSA-eligible health plan during the full year 2006 – the latest period for which full year data were available – and found that 68 percent of account holders contributed their own money to their Health Savings Accounts, and 88 percent had an account balance at the end of the year, carrying over $900 on average for future use.
Health Savings Accounts Approach $4 Billion Mark
Since the products became available in 2004, consumers have opened 2.9 million Health Savings Accounts (HSA) and have collectively banked more than $3.9 billion, according to Inside Consumer-Direct Care's (ICDC) semiannual report on Health Savings Accounts. The average account balance, however, remained virtually unchanged at $1,348 - up just $7 since January. A year ago, financial firms said they collectively held more than $2.33 billion in 1.76 million accounts. By Jan. 1, 2008, assets had grown to $3.2 billion in 2.2 million accounts. The report is based on data from more than 40 financial firms that regularly provide ICDC with account figures.
J.P. Morgan Sees Health Savings Accounts Rise 60 Percent
J.P. Morgan announced that their Health Savings Account (HSA) business has grown by 60 percent in account volume over the last year.
As the only national bank to offer Health Savings Accounts through its own proprietary platform, J.P. Morgan remains an industry leader with more than 300,000 account holders and more than $400 million in assets.
"Health Savings Accounts enable employers and consumers to balance more effectively short- and long-term needs around healthcare expenses," said David Josephs, head of J.P. Morgan's Consumer-Directed Healthcare business.
You can find extensive
information on Health Savings Accounts at: http://www.Health--Savings--Accounts.com | | | |
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