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Who is Eligible for an HSA?
Anyone who is not entitled to Medicare can accumulate tax-favored savings for health care needs.
You must have a qualified high deductible health insurance plan -- and no other similar health insurance.
A qualified health plan for singles has a minimum deductible of $1,050.
For families, a qualified health plan must have a minimum deductible of $2,100 -- one deductible for the entire family. |
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| Health Savings Accounts (HSA) help you take control of your health care expenses with a tax-favored savings account and comprehensive medical coverage. No company has more experience with Health Savings Accounts than Golden Rule. Golden Rule pioneered the first tax favored HSAs, then known as Medical Savings Accounts, offered to the public in 1997. Effective January 1, 2004, tax-favored HSAs are available to all! |
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| What's a Health Savings Account? |
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| HSAs typically cost less than many traditional plans. |
An HSA combines high deductible health insurance with a tax-favored savings account. Money in the savings account helps pay the deductible. Once the deductible is met, the insurance starts paying. Money left in the savings account earns interest and is yours to keep.
Why High Deductible Health Insurance?
To get the benefits of an HSA, the law requires that the savings account be combined with high deductible health insurance. High deductible health insurance costs less than traditional $250 or $500 deductible coverage, because the insurance company doesn’t have to process and pay claims for routine, low-dollar medical care. |
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| How Does a Health Savings Account Work? |
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| HSAs help you save tax-deferred if used for medical expenses. |
You obtain coverage under a qualified health insurance plan with a minimum deductible of $1,050 for singles and $2,100 for families.
Each year you’re allowed to save 100 percent of the health plan’s annual deductible, up to $2,700 for singles and $5,450 for families in 2006 (in most states). Older Americans can save even more!
You use the savings account to pay for your lower-dollar medical expenses, or those that aren’t covered by the health plan.
Once you meet the deductible, the health insurance covers your medical expenses as defined in the policy.
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| What are the benefits of a Health Savings Account? |
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HSA 100® makes quality coverage simple.
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Health Coverage Benefits
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Simple:
100% coinsurance after the deductible is met (optional 80% coinsurance to lower premium).
Predictable:
One deductible per family.
Comprehensive:
Quality medical, including adult preventive care and prescription drugs.
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Savings Account
First dollar:
Savings can be used to help pay the deductible and for noncovered medical expenses, such as dental and vision.
Security:
Savings reduce or eliminate annual out-of-pocket exposure.
Pool of money:
Savings not spent remain in the HSA tax-deferred.
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Tax Benefits
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Tax-deductible:
Contributions to the HSA are 100% deductible -- just like an IRA (see brochure insert for legal limit).
Tax-favored:
Withdrawals for covered medical expenses are never taxed.
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Tax-deferred:
Interest earnings accumulate tax-deferred, and if used for qualified medical expenses, are tax-free. |
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| More Health Savings Account Information |
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