Health Savings Accounts
A Health Savings Account (HSA) is not health insurance. Rather,
it is a savings plan that offers an alternate way for individuals
to pay for their healthcare. HSA’s enable you to pay for
current medical expenses and save/invest for future qualified
medical expenses on a tax-free basis.
In order to open an HSA, an individual must be covered by a “High
Deductible Health Plan” (HDHP). A HDHP is often referred
to as a “catastrophic” health plan because the plan
does not pay for the first several thousand dollars or more of
healthcare expenses. A HDHP is a less expensive health insurance
plan because of this large deductible.
For 2007, to be HSA qualified, the HDHP minimum deductible is
$1,100 for an individual or $2,200 for a family. The annual out-of-pocket
expense, including deductibles and co-pays, for 2007 cannot exceed
$5,500 for an individual or $11,000 for a family.
For 2008 the minimum deductibles remain the same as in 2007,
however, the maximum annual out-of-pocket expense will increase
to $5,600 for an individual and $11,200 for a family.
The maximum amount that can be contributed to an HSA account
in 2007 is $2,850 for an individual and $5,650 for a family. These
contribution levels will increase effective 1/1/08 to $2,900 for
an individual and $5,800 for a family. If you are age 55 or older
you are eligible for an additional contribution of $800 in 2007
increasing to $900 in 2008.
To learn more about an HSA or to enroll in a HDHP, with or without
an HAS, please go to “Contact Us” and one of our highly
qualified agents will assist you.
