Why you Need a Health Savings Account

What if someone told you there was a way you could have your medical expenses subsidized by the government even if you didn’t make a low income to qualify for Medicaid? What if someone told you there was a way that you could pay less for health insurance and even potentially make money on cash invested for healthcare costs? You’d think it was too good to be true, right? It isn’t. All of these things are possible if you open a Texas health savings account.

This is why you need a health savings account. A health savings account buys protection and peace of mind at a very affordable cost and under advantageous financial terms.

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A Health Savings Account: Protection For Your Health

A health savings account goes with a type of insurance normally called “high deductible” insurance. You have Austin health insurance coverage, but your insurance company pays out claims and money for treatment only after you’ve already paid out a set amount of your cash. The money that you pay out is called a “deductible.”

Typically, a deductible is set at a few thousand dollars in plans involving a health savings account. This means all your regular normal medical care is usually paid for by you (unless it happens to exceed the deductible amounts). However, if something really bad happens and your medical bills are high, you won’t have to worry about not being able to pay since the insurer steps in with the big costs after the deductible is exhausted.

An Austin health savings account makes it easier and cheaper for you to pay for all of the medical care you’re supposed to pay out of your deductible. The money goes into the account without being taxed, and thus the government is subsidizing the cost of your healthcare by allowing you to pay for it with pre-tax money (if you’d normally pay .20 per dollar earned, for example, then for every dollar you invested in your health savings account, the government would in a sense be subsidizing .20 of that by letting you keep the .20 that they’d normally take).

A Health Savings Account: An Investment

The money can also grow in the account, tax-free. So, if you don’t use it for health care right away, you can invest it, make money on it, and not pay taxes. This would give you even more money to pay should a medical expense come up that you needed to cover the cost of out of your deductible. No other health insurance policies allow you to have the chance to make money while buying insurance coverage.

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Opening a Health Savings Account

These are some key reasons why opening a health savings account is a very smart choice, especially for those who cannot afford or do not want more expensive and comprehensive policies.

To learn more about health savings accounts or for help finding the best possible health insurance plan for your needs, contact an Austin health insurance expert at Selected Benefits today.