01 Nov 10 Reasons to Move in a New Direction
10 Reasons to Move in a New Direction
Health Savings Accounts Offer 10 Great Reasons to Move in a New
- Savings: The premiums for the qualified high deductible health plans are lower than those of “traditional” health plans.
- Flexibility: You choose how, when, and if the monies in you Health Savings Account are used.
- Tax Savings: Monies contributed to your Health Savings Account, either by the Employer or the employee, avoid payroll taxes, including Federal, State, and FICA.
- Preservation: Unlike traditional “Cafeteria” plans, unused dollars in your account are not lost, but are kept in the account for future use.
- Simplicity: There is no cumbersome administration, monitoring of accounts, or sending in receipts for verification of HSA use. Medical costs can be paid for by a debit card or check.
- Relationships: HSAs help to re-establish the doctor-patient relationship to determine the proper care rather than always needing to “look to the insurance company” for guidance.
- Incentive: HSAs reward you for healthy lifestyles and making wise, cost-effective choices in your medical treatment.
- Portable: Monies in your HSA are never lost or forfeited when you leave your place of employment or when you retire.
- Retirement: At Medicare retirement age, monies in your HSA can still be used tax- free for medical treatment and/or can be taken out to supplement retirement subject only to regular income taxes.
- Control: Most importantly, it gives you a real chance to control health costs long term as your account builds and as insurance renewals are lower.
What are HSAs and HRAs?