Health Savings Accounts

HSA ADVANTAGES:

  • Premiums up to 50% lower than traditional Colorado health insurance plans!
  • Big tax savings! "Triple Tax Advantage!" (average yearly tax savings of $700 (single) to $1400 (family)
  • Better coverage! (HSA side-fund reimburses you for physicals, Rx, chiropractic, dental, braces, vision, LASIK, alternative medicine.)

Questions? Call us at 800-553-1444 or click the Red "Get a Quote" button!

Companies We Currently Recommend
Authorized Agent for the following carriers:
Humana

Reason to buy:

Humana, generally,has the best combination of price, benefits & service for HSA policies.
Anthem Blue Cross & Blue Shield

Reason to buy:

While not as attractive as Humana they do have a slightly bigger network of doctors—especially in rural areas.


Carrier:

Assurant Health
Time Insurance

Network:

Great West Network

Cofinity

Reason to buy:

Offers 36-month rate guarantee on some plans. Deductible reduces by 20% per year on some plans! Provides in-house HSA administration at no extra charge.
Regardless of company chosen, select a deductible around $2500 for an individual and $5000 for a family, followed by 100% coverage. (That's where you'll find the so called "sweet spot.") Also be sure to get a plan that includes drug coverage. Many plans are now available without drug coverage at much lower premiums. In my opinion, that creates a major hole in your coverage. You must also make sure that there is REAL drug coverage, not simply a discount drug card—they are of marginal value with the super expensive drugs.
  • What is a Health Savings Account (HSA)?
  • An HSA is like an IRA on steroids, where the side-fund money is used to pay for your medical expenses. It is designed for the person who is willing to self insure for minor healthcare expenses by building a reserve fund to take care of expenses up to your deductible.
  • There are two parts to an HSA:
    • First, you get an insurance policy that meets certain IRS guidelines. Because these are high deductible plans, the premiums are much lower than traditional plans.
    • Second, you open the actual HSA, with either a local or an online bank that offers HSA administration. The funding for this tax-free account typically comes from your insurance premium and tax savings. The higher your tax bracket, the more you save. For example, a person in a middle-class tax bracket of 30% (25% federal plus 5% state) would save $300 in taxes for every $1000 deposited in an HSA!
  • The money in your HSA account can now be used to pay for medical expenses totally—tax-free! (That's right tax-free—not simply tax deferred.) That is the equivalent of getting a discount of 15 to 45%—depending on your tax bracket—on all your medical expenses due to the tax savings, all courtesy of "Uncle Sam"!
  • Any leftover money in your HSA account remains in your pocket and rolls over year to year. There is no "use or lose" provision as happens in an employer sponsored Health Reimbursement Account (HRA) or cafeteria plans. So if you stay healthy, YOU get to keep the premium savings instead of the insurance company! With interest, this nest-egg can easily grow to over $100,000 by the time you retire!
  • Who is eligible for an HSA?
  • Anyone who has an insurance policy that meets all IRS guidelines for a High Deductible Health Plan (HDHP), and
  • Is not on Medicare, and
  • Is not a dependent on another person's tax return, and
  • Does not have a second comprehensive insurance policy.
  • Note, however, that once you have established an HSA, that ALL family members may use the money in the HSA account for medical expense reimbursement, EVEN IF they are not on the insurance policy with you!
  • Can be used to pay for expanded medical services:
  • You can use pre-tax dollars from your HSA account to pay for items not normally covered by health insurance plans such as dental, orthodontia, vision, alternative medicine such as chiropractic, acupuncture, LASIK—even over the counter medications!
  • Naturally, the usual stuff is also eligible for reimbursement. This includes office visits, lab & x-rays, prescription drugs, emergency room and surgery.
  • Here is a link for a more complete list of eligible expenses.
IRS INSURANCE POLICY GUIDELINES FOR AN HSA QUALIFYING POLICY
2009 Single Plan Family Plan
Minimum Deductible $1150 $2300
Maximum Out-of-Pocket * $5800 $11,600
* Per IRS guidelines, the combination of deductible plus your coinsurance charges for covered expenses cannot exceed the out of pocket maximum shown above. On most policies, the maximum out of pocket will be much less than the maximums shown above.
Maximum Contribution:
  2009 2010
What is the maximum contribution allowed for an individual health policy? $3000 $3050
What is the maximum contribution allowed for a family health policy? $5950 $6150
What is the catch up contribution for those 55 and older? $1000 $1000
  • Tax Treatment:
  • HSA's are widely considered as one of the best, if not the best, tax advantaged product available to the average tax consumer. It is known as a "Triple Tax Advantaged" investment—it simply does not get any better! Here are your tax benefits:
  • An immediate, "above the line", pre-tax deduction. (Just like a regular IRA.)
  • Tax-free interest on your HSA. (Just like a Roth IRA)
  • Tax-free withdrawals on qualifying medical expenses. (Just like a Roth IRA)
  • Do you begin to see why an HSA is so powerful? It combines the best of BOTH a regular IRA and a Roth IRA. In fact, if you can't afford to fund both your IRA and an HSA, you should seriously consider replacing your IRA or Roth contributions with an HSA. Please consult your tax advisor prior to making any decisions.