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Health Savings Accounts
HEALTH SAVINGS ACCOUNT PLANS for Individuals, Families, Self Employed and Small Business Groups
What is an HSA Plan? 
An HSA or a Health Savings Account is an innovative approach to health insurance.
An HSA plan has 2 components:
1. A qualified high deductible health insurance (HDHP) plan
2. An individual or family Tax-exempt Trust (savings/investments) - HSA - similar to a 401(k)
HSA funds you spend count towards your health plan deductible. When you use your Health Savings Account for out-of-pocket costs specified in your plan - like doctor's office visits, dental, vision care and prescriptions - these costs apply to your deductible. After the deductible is met, the insurance plan starts paying. Money put into the account can be used either during the year or accumulated in the account. The funds always belong to you. There is no "use it or lose it" restriction with an HSA. You can save your HSA funds for future needs. Even if you don't use a lot of healthcare services now, your HSA funds will be there if you need them in the future - even after retirement. If you never need your HSA dollars, they go to your heirs.
You don't pay federal taxes on the funds you put in your HSA and your investments can earn interest and capital gains without Federal Tax. You reduce taxable income and your account grows tax-free. Individuals, families and selfemployed can deduct dollars contributed to the HSA account from their gross income, resulting in tax-free medical dollars. You also have the ability to invest the funds like you would with an IRA or a 401(k). Most HSA plans pay interest and offer investment options so you can watch your investments work for you.
Allowable medical expenses are defined by the IRS, and are much broader than most insurance carriers (i.e. includes dental, vision, alternative medicine, long-term care services, prescription drugs and certain over-the-counter medicines). The HSA account is similar to an IRA account, however it is for qualified medical expenses.
- HSA premiums are lower than other fully-insured plans with co-pays.
- In theory, the funding of the health savings account comes from the dollars not being spent on a plan which "pays" for the privilege of co-pays and lower deductibles.
- By allowing individuals to keep the money in the account not used, the government reintroduces the consumer into the health insurance equation; creating an incentive to check bills, compare costs, and evaluate urgency/frequency of appointments.
Who is eligible for an HSA?
Anyone who is not entitled to Medicare can accumulate tax-favored savings for healthcare needs. You must have a qualified high deductible plan to receive the benefits. The current minimum deductible amounts are $1,100 for a single and $2,200 for a family. ASHIL INSURANCE clearly identifies plans that qualify for HSA. Simply use our refine search tool in the Online Quotes to include only HSAs.
Click here for more details on Health Care and Savings for you and your family, HSA benefits, HSA Calculators, etc.Health Care and Savings for you and your family.
Click here to view an article about Health Savings Accounts: A year-long look at adoption, usage and funding patterns.
There are 2 steps to setting up an HSA:
- Select and apply for a qualified HSA health plan
- Wait for your application to be approved
- Set up an HSA tax favored savings account with your insurance carrier or our affiliate.
Click on the HSA Bank logo below to learn more about the advantages of Health Savings Accounts (HSA) required in conjunction with High Deductible Health Plans (HDHP) for Individuals, Families, Self-Employed and Small Group Health Insurance Plans for residents of Texas. You will be taken to a new website for HSA BANK.
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