| |
Health
insurance quotes
by top rated companies, because life is
not always
as certain as your responsibilities...
Health insurance in-depth experience
for over 31 years as well as personalized health insurance services allow you to purchase your health insurance with confidence.
Get An Instant
Health Insurance
Pick Your Company
Apply
Online
Here!
Aetna
Anthem-
Blue-Cross/Blue-Shield
Assurant Health
Blue Cross California
Golden Rule
Humana
Time
Unicare
United Healthcare
Plans By State
Plans By Company
Coverage for
Individuals and
Families...
Help Center...
Secure
Online Express
Underwriting...
Compare
comprehensive
quotes and purchase your individual or
family
coverage online.
It is mandated by each
state
commission product filing
that the rate not be changed by any
sales
entity; therefore, rates will
be the same from all websites.
This assures
the buyer of always
receiving the best rate on any and
all products.
HealthInsuranceQuotesAmerica is a licensed health insurance agency (License #'s:
for
HealthInsuranceQuotesAmerica are issued to
Lewis Fink, CA: OC38446 MT:
29724 F00-0283-LC), and a major resource for individual and family coverage.
We are
independent of any company or
company products offered.
Depending on the plan and the state
of residence,
plans may vary.
Advise Notice:
We do not provide legal advice on this site. The
general information presented on various legal aspects of
plans herein are not intended to be relied upon as legal
advice. Individuals should always seek the advice of a
qualified legal professional.
More >
|
| |
Watch Health Savings Accounts Video
View Health
Savings Accounts Voice
Presentation
Common Questions About Health Savings Accounts
►
What
is an HSA?
►
What are the limits
for a 2007 health plan?
►
Why high deductible
health insurance?
►
How does an HSA plan
work?
►
Who can have an HSA?
►
What are the tax
deductible contribution limits?
►
Are there HSA
management fees?
►
Do HSAs work with
Physician and Provider Networks?
►
Can my HSA be used
for dependents not covered by the health insurance?
►
What about
nonmedical withdrawals?
►
Can my HSA be used
to pay premiums?
►
What are the tax
benefits?
►
What is a qualified
medical expense?*
►
Are lump-sum
deposits permitted?
►
Are there
adjustments for inflation?
►
Can I have an HSA
and an IRA?
►
Can HSA money be
rolled into an IRA?
►
Must distributions
begin at age 701/2?
►
What happens to my
HSA when I die?
►
When can I start to
use the funds in my HSA?
►
What expenses are
qualified for reimbursement from my HSA?
►
What about “catch
up” contributions for those 55 and older?
►
Is it true that
individuals 65 or older can take out funds from their
HSAs for any reason
without a penalty?
What
is an HSA?
A health savings account (HSA)
is a tax-favored savings account created for the purpose of
paying medical expenses.
- Tax-deductible
Contributions to the HSA are 100% deductible (up to the
legal limit) — just like an IRA.
- Tax-free
Withdrawals
to pay qualified medical expenses are never taxed.
- Tax-deferred
Interest
earnings accumulate tax-deferred, and if used to pay
qualified medical expenses, are tax-free.
- HSA money is
yours to keep
Unlike a
Flexible Spending Account, unused money in your HSA
isn’t forfeited at the end of the year; it continues to
grow, tax-deferred.
What are the limits for a 2007 health plan?
|
|
Minimum
Deductible
|
Maximum
Out-of-Pocket
|
|
Single
|
$1,100
|
$5,500
|
|
Family
|
$2,200
|
$11,000
|
Why high
deductible health insurance?
High deductible coverage
often costs less than low deductible and copay plans.
Typically you can save half
on premiums.
How
does an HSA plan work?
An HSA works in
conjunction with high deductible health insurance.
Your HSA money
can be used to help pay the health insurance deductible and
qualified medical expenses not covered by the health
insurance, including dental and vision.
Any
funds you withdraw for non-qualified medical expenses will
be taxed at your income tax rate plus 10% tax penalty.
If you
meet the deductible with covered expenses, the
health insurance
pays remaining covered expenses in accordance with the terms
and conditions of your particular plan.
Who
can have an HSA?
The individual
must be:
1) Covered by high deductible health insurance;
2) Not covered under other health insurance;
3) Not enrolled in Medicare; and
4) Not another person's dependent.
Exceptions. Other health insurance does not include coverage
for the following: accidents, dental care, disability,
long-term care, and vision care. Workers’ compensation,
specified disease, and fixed indemnity coverage is also
permitted.
What are the tax deductible contribution limits?
The law.
Federal law states that annual contribution limits are
$2,850 for singles/$5,650 for families
for 2007.
Excess
Contributions. If contributions exceed the amount you
can legally deduct/exclude from your taxes, the excess
is taxed as ordinary income and subject to a 6 percent
excise tax.
Avoiding Penalties. You can avoid the additional tax by
withdrawing the excess and interest on it before your
tax filing deadline.
Are
there HSA management fees?
As you shop for
an HSA, don’t forget to check the fine print on the savings
account. Management fees are common in the financial
industry, and they may include:
- One time set up fee.
- Monthly maintenance
fee.
- Debit card fee.
- Printed check fee.
- Overdraft fee.
Do
HSAs work with Physician and Provider Networks?
Yes. These networks are very often part of the health
insurance plan, and they provide discounts on health care.
The discounts apply to all care — even prior to meeting the
health insurance deductible. So, your HSAs savings goes
further.
Can my HSA be used for dependents not covered by the health
insurance?
Generally, yes. Qualified medical expenses include
un-reimbursed medical expenses of the account holder, his or
her spouse, or dependents.
What
about non-medical withdrawals?
Non-medical
withdrawals from your health savings account are taxable
income and subject to a 10% tax penalty.
Exception. This tax penalty does not apply if the withdrawal
is made after the date you:
1) Attain age 65;
2) Become totally and permanently disabled; or
3) Die.
Can my
HSA be used to pay premiums?
No, this would be
a non-medical withdrawal, subject to taxes and penalty.
Exceptions. No penalty or taxes will apply if the money is
withdrawn to pay premiums for:
1) Qualified long-term care insurance; or
2) Health insurance while you are receiving federal or state
unemployment compensation; or
3) Continuation of coverage plans, like COBRA, required
under any federal law; or
4) Health insurance after you turn 65, but not Medicare
supplement insurance.
What are the tax benefits?
There are three major tax advantages to your HSA.
1) Cash contributions to an HSA are 100% deductible from
your federal gross income.
2) Interest earnings accumulate tax-deferred.
3) Withdrawals from an HSA for “qualified medical expenses”
are free from federal income tax.
What
is a qualified medical expense?*
A qualified
medical expense is one for medical care as defined by
Internal Revenue Code Section 213(d). The expenses must be
primarily to alleviate or prevent a physical or mental
defect or illness, including dental and vision. Most
expenses for medical care will fall under IRC Section
213(d).
However,
some expenses do not qualify.
A few examples are:
• Surgery for purely cosmetic reasons
• Health club dues
• Illegal operations or treatment
• Maternity clothes
• Toothpaste, toiletries, and cosmetics
HSA
money cannot generally be used for insurance premiums. See
this page for exceptions.
*See IRS
Publications 502 (“Medical and Dental Expenses”) and 969
(“Health Savings Accounts and Other Tax-Favored Health
Plans”) for more information.
Are lump-sum deposits permitted?
Under the law, yes, but make sure your financial
institution accepts lump-sum deposits. You may also be
required to continue minimum monthly deposits. Lump-sum
deposits may not exceed the maximum annual contribution
limit.
Are
there adjustments for inflation?
Yes, the tax law
requires an annual Cost of Living Adjustment (COLA) based on
changes in the Consumer Price Index. This calculation,
rounded to the nearest $50 increment, affects deductible
limits, maximum out-of-pocket amounts, and the maximum
annual HSA contribution limits.
Health
insurance deductibles may change by the COLA each year.
Can I have an HSA and an IRA?
Yes, having an HSA in no way restricts your ability
to have an IRA.
Can HSA money be rolled into an IRA?
No, it can only be rolled over into another qualified
HSA without incurring tax consequences.
Must distributions begin at age 701/2?
While the law is silent on this point at the present
time, we would expect the IRS to treat this like an IRA.
Therefore, the answer will probably be “yes.”
What happens to my HSA when I die?
Your HSA will be treated as your surviving spouse’s
HSA, but only if your spouse is the named beneficiary. If
there is no surviving spouse or your spouse is not the
beneficiary, then the savings account will cease to be an
HSA and will be included in the federal gross income of your
estate or named beneficiary.
When can I start to use the funds in my HSA?
Once your account is open, a deposit has been made to
your account and funds are available, you can start using
your HSA. You are 100 percent vested as soon as the funds
are deposited and you have total control over the funds.
What expenses are qualified for reimbursement from my HSA?
You are eligible to receive tax-free reimbursement
for qualified health expenses not covered by your insurance
as defined by Section 213(d) of the Tax Code. A list of
these expenses is available on the IRS Web Site,
www.irs.gov. HSA distributions
used for any purpose other than the qualified medical
expenses listed will be taxable, and the appropriate tax
rules will apply.
What about “catch up” contributions for those 55 and older?
Individuals aged 55 and over may contribute an
additional $800 above the maximum for tax year 2007.
Is
it true that individuals 65 or older can take out funds from
their HSAs for any reason without a penalty?
If an individual is age 65 or older, regardless of
whether the individual has been enrolled in Medicare, there
is no penalty to withdraw funds from the HSA. As always,
normal income taxes will apply if the distribution is not
used for un-reimbursed medical expenses (expenses not
covered by the medical plan).
Note: This
is presented as general information. Precise Health Savings Account tax effects depend on federal
law. We recommend that you see your tax advisor for specific tax advice. This
information was supplied by HSACenter.com
|
|
HealthInsuranceQuotesAmerica.com