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Facts and Myths of Health Saving Accounts RevealedDue to the increasing popularity of health savings accounts (HSAs), many rumors have popped up out from nowhere. These rumors can be misleading and cause you to make unwise decisions when seeking out a plan. Therefore, if you’re new to health savings accounts, it’s time to separate the myths from the facts.
Myth #1: Health Savings Accounts Cannot Help the Uninsured
Fact: A Health Savings Account is actually a less expensive choice for previously uninsured people. HSA-qualified plans paired with HSAs usually offer lower premiums, which makes them an attractive option for previously uninsured people.
Additionally, health savings accounts are now enabling small business owners to provide health insurance to their employees.
Myth #2: A Health Savings Account Does Not Help Individuals with Limited Incomes
Fact: Health Savings Accounts have become popular because they offer a more affordable insurance option for all Americans, regardless of income. HSAs provide a vital option for people having trouble affording traditional insurance plans.
In addition, HSAs have added extra help for all low-income Americans. Since the President has expanded the HSA features by allowing a family of four that makes $25,000 or less annually to receive a refundable tax credit of $3,000. This allows these families to purchase an HSA-qualified plan that will cover their major medical costs.
With the health savings account paired with an HSA-qualified plan, the families can now place up to $1,000 of the refunded money directly into their HSA in order to pay for routine medical costs. Plus, when a family does not spend the money they save in the account, this will be carried over to the next year while earning tax-free interests.
Myth #3: Health Saving Accounts are Only for the Healthy
Fact: Health Saving Accounts help anyone, regardless of health or age. In fact, over 50% of HSA enrollees are over 40 years old. In addition, individuals with illnesses covering high medical expenses can save a significant amount of money from their health savings account because the HSA-qualified plans could cover large medical bills. This way, you can lower your expenses while covering your other needs tax-free.
Myth #4: HSA-qualified Policies have Limited Coverage
Fact: HSA-qualified policies DO provide a comprehensive coverage with lower premiums. Although HSA-qualified policies have the same benefits of traditional health insurance, they can cover prescription drugs, doctor’s visit, OB/GYN services, emergency room expenses, hospitalizations, lab costs, x-ray services, and preventive care without a deductible.
Myth #5: Opening a Health Savings Account is a Complicated Process
Fact: Signing up for a health savings account is very straightforward. You can open your account with credit unions, banks, insurance companies, or other qualified companies. In addition, your employer can also set up a plan for you.
Now that you’re aware of the myths of an HSA, you have the choice to open up your own account and save medical costs, save on yearly taxes, and take care of your well-being. What are you waiting for?
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