Dollars
and sense.
NEW LAWS
MAKE HSAs MORE ATTRACTIVE THAN EVER!
If you want to save money on your insurance premiums, combining
our comprehensive, high-deductible policy with a Health Savings
Account (HSA) makes sense. A policy costs less than a
low-deductible policy--often 50% less. You can then use the
money saved to fund your Health Savings Account. HSA funds1
earn tax-deferred interest, and they can be withdrawn, tax-free,
to pay qualified health care expenses.2
In addition to saving you money, Qualifying gives you freedom
of choice in health care that many other plans can't offer.
With an HSA you can see the physician or health care professional
of your choice. You can also establish your Health Savings
Account through the administrator of your choice. Or we'll
be glad to assist you in selecting a Health
Savings Account administrator.
You control your health care spending
With a Health Savings Account you have complete control of
your funds. You decide how much and when to make deposits
to and withdrawals from your HSA. You can then use the federal
tax- advantaged HSA funds, including tax-free interest earned,
to pay qualified expenses for
medical services. Qualified expenses include your deductible
and coinsurance and other health-related expenses not covered
by the policy, such as dental care, vision care and long term
care insurance premiums.
You remain in control of your medical expenditures by keeping track of the
qualified expenses you pay, so you'll know when to file claims with your policy. By using HSA funds to pay at the time of service, you'll be eligible for cash
payment discounts offered by some health care professionals.
See HSA Qualified Expenses for what expenses
are covered.
Ongoing tax advantages
At the end of each year, your Health Savings Account balance
is yours to keep. And as long as the funds remain in the account,
they are not subject to federal tax and continue to earn tax-
deferred interest.
Once you reach age 65, the funds can continue to be withdrawn
tax-free to pay qualified medical expenses including long
term care insurance premiums. Distributions made for any other
purpose are subject to income tax and a 10% penalty. The 10%
penalty is waived in the case of death or disability. The
10% penalty is also waived for distributions made by individuals
age 65 and older. These features make a medical
savings account an attractive way to help save for your retirement.
Federal requirements3 Federal law limits the deductible
amounts that can be offered with HSA compatible major medical
policies. A federal limit also exists on the out-of-pocket
amount to be paid for the policy's deductible (minimum deductible
of $1,100 for an individual policy; $2,200 for a family policy)
and coinsurance - $5,500 for an individual policy; $11,000
for a family policy.4 There is also a cap on annual
tax-deductible health savings account contributions. Federal
law sets the cap at $2,850, regardless of the selected deductible;
and for family coverage the cap is $5,650, regardless of the
selected deductible.
Health Savings Accounts have now been available since January
1, 2004. If you have an MSA medical plan and MSA account,
you will be “grand-fathered”. It can not be taken
from you. You can however, roll your MSA funds into a new
HSA account with no penalty.
HSA Financial Institutions
lists some institutions offering HSA's.
1. Up to the maximum tax-deductible health savings
account contribution.
2. As described by IRS Code Section 220(d)(2).
3. IRS
Code Section 220
4. Policy meets current federal guidelines for use with a medical savings account. If the federal minimum and maximum limits change, deductible choices
will automatically be adjusted to the next available deductible as needed to meet federal guidelines.
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Asuris NW Health 
