Health Savings Accounts - Investing For a Healthy Future
Tuesday, February 3rd, 2004Most of us at one time or another have had a savings account at a bank. Health savings accounts are not that much different. A health savings account is a tax free medical saving account. Health savings accounts are always associated with high deductible health plans (HDHP). With a high deductible health plan, your annual deductibles are high but the monthly premiums are low. The health savings accounts make it possible to set money aside and then use it whenever needed for your medical expenses.
Health savings accounts are fairly new to the insurance scene. In December of 2003, President Bush signed the Medicare Prescription Drug Improvement and Modernization Act. This law was intended to help businesses save money on skyrocketing health insurance costs by allocating a greater portion of the cost to employees. In turn, an employee would pay lower monthly premiums but was responsible for much higher deductibles before health insurance coverage would kick in. In effect, you are self-insured up to (more...)
