Here’s a cool video from First Horizon MSaver. It’s a good overview of how HSA’s work:

Some questions came up about the HSA Contribution Schedule - Martin over at HSAFocal Point does a great job on answering that:

The HSA legislation passed by Congress late last year offered many additional benefits not the least of which was the ability for a qualified HSA plan (HDHP) member to fully fund their health savings account regardless of when in the year they became covered by the plan. The only qualifier is that the plan member would have to stay on the qualified HSA health plan throughout what was called the “testing” or “deeming” period.

Unfortunately, the language in the bill was a bit confusing. It was clear that a person who became eligible in December could fully fund their HSA for that entire year so long as they stayed on an HSA-qualified health plan though December of the following year.

What was not so clear is what happens to the person who becomes eligible in June. Must they stay on the HSA plan through June the following year, or through December of the following year?

The answer that we received from the U.S. Treasury Department stated that the 12 month “testing period” is from the end of year. In other words, if the HSA is established in June with June 1, HDHP coverage, the individual must stay eligible until December 31, of next year.

This is probably not the answer most people will want to hear, but it is good to know.

This news came on the same day it was reported in Business Insurance that the Internal Revenue Service has proposed regulations that would allow employers that contribute to employees’ health savings accounts to accelerate contributions for employees whose medical care expenses are greater than what the employer has so far contributed to the HSA during the year.

Business Insurance reported that such an acceleration would enhance the appeal of HSAs by reducing employees’ concerns that their accounts could be exhausted if they incur big medical bills early in the year before employers make all of their contributions.

Technorati Tags: Consumer Driven Health Care

The HSACrusader has posted a nice article outlining more of the benefits of Health Savings Accounts - and in the following excerpt, he’s outlining the different approaches one can take as an individual HSA Consumer:

The number-one reason to get an HSA: the potential to plan and save for a lifetime of benefits.

The first option for using HSA dollars is to spend them now in order to maximize one’s health. This might mean paying for services not normally covered by traditional health plans. For example, a diabetic or a person with heart disease risk factors, such as elevated cholesterol, blood pressure or stress, might use tax-free HSA dollars for nutrition counseling from a registered dietitian to lower cholesterol and weight; exercise counseling to develop an exercise program; and stress-management counseling to lower stress in life. It can mean using HSA dollars to pay for “health coaching” from a wide variety of traditional and alternative health care professionals.

The second option is to save for future deductibles. Accumulating enough money in the HSA to pay several deductibles creates a comfortable feeling—you know you have already saved for your future health care expenses.

The third option is to accumulate unused dollars to spend during retirement. Fidelity Investments estimates that the average couple going into retirement will spend $190,000 in health care expenses not covered by Medicare. In a perfect world, maximizing health and savings now will lead to a substantial accumulation of money that ultimately pays health care expenses for the rest of one’s life.

Go there to read the rest of the article.

Technorati Tags: HSA Strategy, Health Savings Accounts

Wikipedia is a well known Internet resource, and their entry on Health Savings Accounts is no different.

Check it out here.

This is one of the most comprehensive histories of HSA’s that I’ve seen.  Enjoy.

Technorati Tags: HSA’s, Health Savings Accounts, Wikipedia

A recent post from the Health Savings Account blog discusses a recent briefing on Capitol Hill - and shows a number of examples of why consumers are actively seeking out HSA’s.

From the blog:

Before purchasing her HDHP in 2004, Krupinski’s PPO policy cost her $10,800 a year in premiums and carried a $2,000 deductible. When HSAs were created, she learned she could get one for $4,200 a year with a $3,500 deductible. Now, she said, she comes out ahead in several ways.

“Every month, I put about $350 into my HSA and pay $350 for the premium,” Krupinski explained. “That HSA is my money, and yet I am still paying less per month than I was under the old policy. As far as I’m concerned, I look at my deductible as a ‘no-deductible’ plan. The beauty of this is that if I have anything left over at the end of the year, that money is mine. It gives me options, and it is much better financially.

There’s more here.

Technorati Tags: Health Savings Accounts, HSA, Consumer Health Care

Here is a short list of the most common medical expenses that qualify for use with a health savings account:

HSAs can be used to pay for many types of medical expenses, even some that are often excluded on health insurance plans. These include:

* Health insurance plan deductibles, copayments, and coinsurance
* Prescription and over-the-counter drugs
* Dental services, including braces, bridges, and crowns
* Vision care, including glasses and lasik eye surgery
* Psychiatric and certain psychological treatments
* Long-term care services
* Medically-related transportation and lodging

Typically HSAs cannot be used to pay health insurance premiums, although there are exceptions for:

* Health insurance premiums if you are receiving federal or state unemployment benefits
*Premiums for COBRA qualified health insurance
*Certain qualified long-term care insurance premiums
*Premiums for a health plan (other than a Medicare supplemental policy) for an individual age 65 or older

Note: You must establish an HSA before incurring any expenses or the expenses will not qualify.

Technorati Tags: Health Savings Account Qualified Expenses

This is the official launch of the “Truth about HSA’s” website. The mission of this site is to help get HSA information in front of people who need it, and let people who wouldn’t benefit from them know as well. This site will strive to be a resource for unbiased HSA information - without all the political mumbo-jumbo that has come along with them.

So - come back soon, and check out what we have to offer.

For more information - check out the About and Legal pages.

Technorati Tags: HSA’s, Health Savings Accounts, Health Care