In today’s marketplace, many people get their health insurance coverage from a spouse’s benefits plan; however, a growing number of married couples maintain separate individual health insurance coverage.
Health savings accounts (HSAs) have been around since 2003; however, many people remain unfamiliar with them. Similar to a personal savings account, an HSA allows an individual to use untaxed savings to pay their own individual health insurance costs—and to receive employer contributions up to a certain amount.
Health savings accounts (HSAs) have become a popular option for people who wish to have comprehensive individual health insurance while building up tax-free savings they can roll over from year to year. According to research firm Devenir, more than 16 million people had an HSA in 2015.
Many people have questions about health savings accounts (HSAs) when they’re offered alongside their individual health insurance. The Internal Revenue Service (IRS) has strict regulations in place regarding who is eligible to use the funds, in addition to what products and services can be claimed. If you still have some questions (like many people with HSAs), this information should help clear some things up for you.
If you have questions about the regulations behind your health savings account (HSA), you are not alone. There is quite a bit of confusion regarding contribution and distribution rules for HSAs—and understandably so. Healthcare regulations change frequently, and it can be difficult to keep the details straight. Here is what you need to know about current HSA regulations.
A health savings account (HSA) is a tax-advantaged financial account designed to help individuals and families cover the cost of qualified medical expenses. HSAs are particularly helpful because they never expire. You can use the funds you’ve saved even if you no longer have a high-deductible health plan (HDHP)—even decades later and into retirement, when your medical expenses are typically higher. Here is a list of medical expenses that are HSA eligible (or not eligible).
A high deductible health plan (HDHP) paired with a Health Savings Account (HSA) is growing in popularity. For example, HDHP plans have increased from 4% of all employer-sponsored health insurance plans in 2006 to 24% in 2015. To open an HSA, you must have an HDHP and meet other qualifying requirements (for background, see this article on HSA rules). Here is a summary of the HDHP basics and guidelines, according to the IRS.
With pensions being quickly phased out and the future of social security increasingly uncertain, concerns about retirement savings are rising. Many Americans start saving too late, and do they do not know how much they should save. According to the National Institute on Retirement Security (NIRS), “the average working household has virtually no retirement savings.” With the rising popularity of high-deductible health plans (HDHPs), health savings accounts (HSAs) have also become more prevalent. Most people don’t think of HSAs as a way to save for retirement, but they are actually IRAs (individual retirement accounts) but better—and they can help you live more comfortably in your golden years.
There’s no doubt about it: our healthcare system is complicated. Just when you think you’ve mastered the hurdles of choosing a plan that works for your small business, your benefits advisor tells you about another acronym you never even knew existed. We’re here to help you sort out your options and answer your questions. Let’s start with a big one: HRA, HRP, HSA, or FSA? And how are they different?
Today, a stand-alone Health Reimbursement Arrangement (HRA) – an HRA not tied to a group health insurance policy – is largely out of compliance with healthcare regulations. But that could change. If the Small Business Healthcare Relief Act passes, the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will join the menu of options for building stronger benefits packages.
Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.