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What is a Health Savings Account (“HSA”)?
Are HSAs part of my family or group medical or health insurance? Is there a Colorado Health Insurance Agent that can help me answer questions?
A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account.
You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow.
What Is a “High Deductible Health Plan” (HDHP)?
You must have an HDHP if you want to open an HSA. Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn't pay for the first several thousand dollars of health care expenses (i.e., your “deductible”) but will generally cover you after that . Of course, your HSA is available to help you pay for the expenses your plan does not cover.
Who Can Have an HSA
Any adult can contribute to an HSA if they:
• Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
• Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or longterm care insurance are permitted)
• Are not enrolled in Medicare
• Cannot be claimed as a dependent on someone else's tax return
Contributions to your HSA can be made by you, your employer, or both
More information on HSAs - contact your JMP Financial Services insurance agent today serving Colorado at Colorado Health Insurance Agent link above.
Jim Parker, president of JMP Financial Services, has been a specialist in the Colorado health insurance market for more than 17 years. We offer many different types of health insurance including PPO's, HSA's, and HMO's for both individuals and small groups. We also offer several short term, international (whether traveling outside the U.S. or coming to the U.S.) and travel plans.
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