Health Savings Accounts
President George Bush has proposed a number of ways to help more people afford health care. One way is through Health Savings Accounts (HSA). What are these HSAs, though?
In 2003, Health Savings Accounts were established by the Health Reform Bill. HSAs allow people to save pre-tax dollars to pay for health care. People contribute money to their HSAs without paying taxes on that money. HSAs are like IRAs in some ways, such as:
- They roll over from year to year
- They are transferrable from employer to employer
- They do not end when a person becomes unemployed
- They are inheritable
Moreover, when policyholders contributed money to their HSAs, they receive tax deductions, and whatever investment earnings they have are also tax free. When policyholders withdraw money from their HSAs for qualified medical expenses, there are no taxes levied. Money from HSAs can be used to save for future medical expenses or pay for services not provided by an individual’s current providers.
Most importantly, as President George Bush emphasized, people have control over their HSAs. They can choose how much, if anything, to contribute to their accounts. They can choose what to do with the money in the account (as long as it is for medical purposes), with what company to open their account, and what investment paths can or should be taken with the money in the account.
Learn More about Texas Health Insurance
To find out more about HSAs or to find out what
Texas health insurance plan is right for you,
contact Option 1 Health Insurance.