Health Care Reform

There is much to do in the news today about Health Care Reform. The problem as the government sees it is that only about 90% of Americans are taking responsibility for their health care. The other 10% either cannot or will not do so through any of the many private or government options available.
One way that you can reduce your health insurance costs and the cost of your health care is through a Health Savings Account (HSA). In addition to reduced cost, HSAs also offer significant tax advantages that can reduce your taxes. The bottom line is that they are a smart way to take responsibility for your health care and maintain your freedom in regard  to your health care.

Here are some of the reasons you should consider an HSA:

• ·         HSA contributions are non-taxable
• ·         Qualified withdrawals from an HSA are non-taxable
• ·         There is no limit to the amount of money you can accumulate in an HSA
• ·         HSAs roll over from year to year. If you don’t use all of the money in one year,  you can still contribute the maximum for the next year
• ·         HSAs are owned by the account holder so you don’t lose the money if you change jobs
• ·         Employers AND employees can contribute to an individual’s HSA in the same year

The minimum deductible for a Qualifying High-Deductible Health Insurance Plan in 2009 is $1,150 for an individual and $2,300 for a family. The maximum contribution level for an HSA account for 2009 is $3000 for an individual and $5,950 for a family. There is also a Catch-Up Contribution for those over the age of 55 (including age 55) of $1,000.

Now here’s the big one….the maximum Out-Of-Pocket expense for a High Deductible Health Plan for 2009 is $5,800 for an individual and $11,600 for a family. Considering that most major surgeries will cost well into the five figure range and even into the six figure range that’s a pretty big savings.

Health Savings Accounts; lower cost, tax-advantaged, portable AND freedom to manage your health care. Now that’s health care reform.
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