HSA HSA Compatible Health Plan Health Savings Account

1
HSA HSA Compatible Health Plan Health Savings
Account

• 1. Obtain a High Deductible Health Plan (HDHP)
  through a health insurance company.
• 2. Open a Health Savings Account, usually
  through the health companys preferred vendor
  (Bank).

2
HSAs The Basics

• Health Savings Accounts (HSAs) were created by
  H. R. 1, the "Medicare Prescription Drug,
  Improvement and Modernization Act of 2003,"
  signed into law by President Bush on December 8,
  2003 and are designed to help individuals save
  for future qualified medical and retiree health
  expenses on a tax-free basis.

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HSAs The Basics - Facts

• You can claim a tax deduction for contributions
  you make to your HSA.
• The contributions stay in your account year after
  year until you use them.
• The interest or earnings inside your account are
  tax-free if used for qualified medical expenses.
  (Source Department of the Treasury Internal
  Revenue Service)

4
HSAs The Numbers

• Your annual HSA contribution cannot exceed the
  deductible of your HDHP. For example, if you
  choose a plan with a deductible of 1,000, you
  may not deposit more than 1,000 in your HSA for
  that year.
• The most you can put into your account for 2005
  is 2,650 if you have single coverage and 5,250
  for a family.

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Potential Federal Tax Savings
Illustration for potential federal tax savings if
an individual makes the maximum allowable
contribution for 2005 of 2,650 Consult your
tax advisor for more details
6
HSAs The Numbers - Over 55?

• Individuals 55 and older who are covered by an
  HDHP can make additional catch-up contributions
  each year until they enroll in Medicare. The
  additional "catch-up" contributions to HSA
  allowed are as follows
• 2005 - 600 2006 - 700 2007 - 800 2008 -
  900 2009 and after - 1,000

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What Do I Need To Do?

• Visit NeedToGetInsurance.com.
• Compare plans between our major carriers.
• Choose a plan
• Deductibles
• 2,400/4,800 or 3,500/7000
• (Individual/Family)
• Maternity Coverage?

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Final Steps

• Proceed to application process Apply online,
  download an application or request an application
  for delivery by mail or e-mail. There are 2
  applications - One is for the High Deductible
  Health Plan the other is for the Health Savings
  Account.
• Complete applications and return to us for
  processing.
• Contact us with any questions you may have.