The HSA - What Is It?
Wednesday, January 30th, 2008The HSA stands for Health Savings Account. Simply put it is an insurance policy paired with a savings account. Personally, I love them. To me the HSA is a great insurance policy for people of all walks of life.
If you a sickly person the HSA is appropriate, because it reduces your out of pocket costs to your deductible, On the other hand, if you are a healthy person that rarely sees the doctor, it provides a tax break on your health insurance costs, and it allows you to build up a savings account to cover any medical costs up to the deductible amount.
A typical HSA has a deductible that can range from $1100.00 up to $10,000.00 depending on the company that you choose and your personal preference on premiums and deductibles. Typically after you meet the deductible, the HSA then covers your health care costs at 100%. There are exceptions to this, in that, some companies offer the HSA with 80% coverage after the deductible is met.
That is the gist of the HSA. Complicated? No. It (more...)
