Florida HSAs Health Insurance Plans are available with a variety of features. You should first know that Health Savings Accounts (HSAs) were developed by Medicare in December of 2008 and signed into law by President Bush. Their purpose is to help people save money for eligible medical expenses that will take place in the upcoming calendar year. Any deposits made into HSAs are on pre-taxed dollars. Following are some frequently asked questions about Florida HSAs with health insurance plans, and their answers. This information can help you decide if a health savings account is right for you.
Question #1 What Type Of Health Plan Is Eligible For HSAs?
In order to have a health savings account, you have to have a High Deductible Healthcare Plan (HDHP). This type of plan is for major or catastrophic health situations. With a high deductible plan, you pay a low monthly premium in exchange for a high deductible. Usually this deductible is in the thousands of dollars. Your entire deductible must be paid before any health benefits kick in.
By law, your deductible must be at least $1,100 but no more than $5,600 for an individual and at least $2,200 but no more than $11,200 for family coverage. You then deposit pre tax dollars into your HSA so that you can pay your deductible and other qualifying expenses. This includes prescriptions, over the counter medicine, and childcare needed for medical appointments.
Question #2 How Do I Get A Health Savings Account?
There are several ways that you can get a health savings account in Florida. The most common way to get an account is through an employer. Your employer can set up an account through your health insurance plan and then the money is withdrawn, before taxes, directly from your paycheck. You can also go to a local bank or credit union and open up a health savings account. Some banks will require you to have a checking account as well.
Question #3 Who Can Contribute To My Health Savings Account?
You can set up your health savings account in your name only, your and your spouse’s name, or your name and another person of your choosing. This may be an adult child, a parent, a friend, or a relative. Then, anyone whose name is on the account can contribute to the account through deposits or direct withdraws from a paycheck. As long as you don’t exceed the maximum amount outlined by law, contributions can be made continually.
An employer can also contribute to a health savings account. Some small businesses use health savings accounts as an alternative to offering medical insurance. For struggling businesses, offering health insurance to employees may be too costly. But employers can contribute a weekly, monthly, or yearly amount to an employee’s health savings account as a way to offer more benefits. This money is tax deductible to employers so it is often a good way to offer some type of benefits to employees, and still manage a company budget.
Question #4 What Can I Spend My Health Savings Account Money On?
The government does not provide a list of what are considered qualifying medical expenses since there are many individual cases to consider. However, there are some definite expenses that you can withdraw money to pay for. For example, dental care can be paid for with money from your account as long as it is not a cosmetic procedure. This includes cleanings, fillings, oral surgery, and x-rays.
Also covered under qualifying medical expenses is vision care. Again, it must not be cosmetic. Frames, lenses, eye exams, and lasik surgery are all covered. You can use funds not only for your medical expenses, but for your spouse’s expenses or your dependent’s expenses. If you leave the country and need medical care, you can use funds to cover this. In some cases, you can even use your health savings account money to purchase additional insurance such as long-term care insurance.
Question #5 Will I Ever Lose Any Of The Money In My Account?
Some people fear that certain circumstances will cause them to forfeit some of the money already contributed into HSAs. For example, if you lose your high deductible insurance coverage that is connected to your account, you might think that you will lose your money. This is not the case. Though you can no longer contribute to your account, you can continue to withdraw the money from your account to spend on qualifying medical expenses.
Another common concern is that your money will be lost at the end of the calendar year, if it has not been spent. This is not true. The money in your account rolls over at the end of the year. If you don’t spend your money, you can’t withdraw it, but you can save it for the next year. There are not tax penalties for this since the same law applies year after year.
Another concern is that money may be lost when you qualify for Medicare. This is not the case. After you turn 65 and start receiving Medicare, you can still use the money in your health savings account. In fact, you can use the money to pay your Medicare premiums, deductibles, co-pays, and coinsurance. If you still have a medical plan through a retirement pension, you can use the money to pay this premium as well.
Make Sure You Know Your Fl Health Insurance Options!
Health savings accounts are only one way to cover your medical expenses. If you want to compare what insurance companies have to offer through plans, as well as health savings accounts, you can use the FL health insurance comparison tool on this page right now. This tool will compare rates and quotes from top companies of health plans that are available to you. If you still have questions, you can contact one of our independent agents who is ready to help you at any time. Get started now!