Understanding H.S.A. Plans

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Understanding H.S.A. Plans

• A short explanation of
• Health Savings Accounts
• and
• Qualified High Deductible Health Plans

2
H.S.A.s can only be added to a Qualified High
Deductible Health Plan or HDHP

• HDHP Rules, 2010
• Generally One deductible per policy, not per
  person.
• Minimum deductible for a single person
  is 1,200.
• Minimum deductible for a family is
  2,400
• Maximum out of pocket in network is
  5,950/single
• Maximum out of pocket in network is
  11,900/family
• No first dollar benefits allowed except for
  wellness.
• NO Dr. Office visit co-pays.
• NO RX co-pays
• Must be filed as a qualified plan

3
All H.S.A. Qualified plans areNotCreated Equal

• The rules are clear as to what
• can not be in a HDHP.
• There are very few rules
• dealing with what Must be included.
• All H.S.A. plans are not the same.

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For ExampleTime/AssurantOne Deductible Health
Plan

• Fully Comprehensive Health Coverage
• Hospitalization
• Out Patient Surgery
• Dr. Office Visits
• Labs, X-rays, Testing
• Prescription Drugs
• No Limits on Ambulance

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H.S.A.s Medical I.R.A.s

• Once the Qualified HDHP is in place, a health
  savings account may be set up to work in
  conjunction with that health plan.
• Contributions to an H.S.A. are made using pre-tax
  dollars.
• Funds in the H.S.A. account are not taxed when
  used to pay for qualified medical expenses.

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Funds in the H.S.A. Are not taxed when used for
medical expenses!!!!

• Tax free can be used to pay for
• Expenses that qualify toward the deductible on
  the health plan
• Expenses for non-normal medical products and
  services that are not covered by the health plan

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H.S.A. Rules

• 2010 Annual Contributions for a single person are
  limited
• to 3,050.
• 2010 Annual contributions for a family are
  limited to 6,150.
• H.S.A.s have a catch-up provision that allows
  account holders over age 55 to contribute
  additional money to their savings accounts each
  year. (This year 1,000)
• There is no minimum funding requirement for
  H.S.A.s

10
Future Savings

• If the money put into the Health Savings Account
  is not used, it stays in the account accruing
  interest, or appreciation.
• Each year the account holder is allowed to
  contribute additional funds into their Health
  Savings Account,
• building their Medical I.R.A.

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At age 65

• Account funds can be used to pay
• Medicare Part B premiums as well as
• Health needs unmet by Medicare.
• Funds can be accessed for non-medical
• reasons without penalty. (normal taxes
  apply.)