Why do you need an HSA?
To Cover More with Less.
Once you have established a health savings account, the benefits are numerous. In a nutshell, an HSA offers these advantages, among others:
· Lower monthly health insurance premiums
· More stability in premiums
· Immediate tax-savings...all deposits are 100% deductible (and all permiums if you are self-employed)
· Long-term growth potential (the only way to actually "make money" with a healthcare plan)
· Tax-free withdrawals to pay medical expenses covered under the high deductible HSA policy, in addition to tax-free withdrawals for many medical services not covered by insurance (such as prescriptions, dental, vision, acupuncture, alternative medicines, etc.)
· Tax-free withdrawals to pay for long-term-care insurance, COBRA premiums, or health insurance premiums while unemployed
· Freedom to choose your own medical providers (no HMO-type restrictions)
· Discounts on services offered by PPO
· More control over your own healthcare decisions
Of course, the biggest benefit of owning a health savings account plan may very well be the fact that you will quickly become the envy of all your high-premium paying friends!
