Health Savings Account (HSA) Basics

(How a Health Savings Account Can Save You Money and

Simplify Your Medical Insurance Needs)

1. You purchase a high-deductible insurance plan (HDHP), which costs you LESS than a "standard" plan.     Said another way -- you pay LOWER premiums.

2. Part or all of the money you save on premiums can then go into a tax-free health savings account (HSA)     -- in YOUR name.  I.e., it's YOUR money (not the insurance company's). 

3. A Health Savings Account's above-the-line deductibility REDUCES your adjusted gross income, thereby helping to REDUCE your tax burden each year. 

4. If a health issue arises, you use your Health Savings Account (HSA) to pay any qualified expenses which your HDHP doesn't cover.
    a. The money is withdrawn tax-free.  
    b. Making payment couldn't be simpler: you just hand the provider your HSA debit card.

    c. In general, “qualified” expenses include dental bills, over-the-counter medicines, prescription drugs,         eye care, hearing aids, and many other health-related items and services that the HDHP doesn’t pay.

5. If, through the years, you don't use all the money in your Health Savings Account (HSA) then you can leave it there to meet retirement costs (Medicare deductibles, long-term care, et al) -- or you can withdraw it.  If you're over the age of 65, there's no penalty for withdrawal. 

The Concept is Simple:

You pay a portion of your health-care budget to yourself instead of an insurance company, and you gain some distinct tax advantages in the process.

FACT is not an insurance company, agent or broker.  The association does not market any insurance product.  FACT does endorse products offered by Golden Rule Insurance Company, but receives no compensation of any kind for doing so.  Any information distributed concerning Health Savings Accounts is based upon FACT's careful research and understanding.  The association believes this information to be accurate, but recommends that you consult with an insurance expert and/or financial planner to receive a professional explanation of HSAs and to help you determine whether an HSA is right for you.

CLICK HERE

for

Qualified Advice and (if desired) a

FREE QUOTE

1.  You will be re-directed to the UnitedHealth One/Golden Rule Web site, where you can enter the zip code,      gender(s) and age(s) of those to be insured.  (Simply hit the "CLICK HERE" button near the top of the      page to get your FACT-member rate.*)

2.  Compare plans, deductibles, co-insurance options,  costs and coverage.

3.  Then, if you decide to request protection, click the "Apply" button.

4.   And please ... if you have any questions, call 866-310-7451 for personal attention from

    an expert product advisor.

*Plans described have been issued to FACT exclusively for the association's members. If you are approved for coverage, your $3/month FACT membership dues will be billed automatically with your insurance as a cost-saving convenience for you and for us.

Frequently Asked Questions regarding Health Savings Accounts (HSA)

Health Savings Accounts (HSAs) are designed to help individuals save for future medical and retiree health expenses on a      tax-free basis.  Here is more information to help you make an important decision.

Am I eligible?

You are eligible for an HSA if you are covered by a high-deductible health insurance plan (HDHP), aren’t covered by other health insurance, are not enrolled in Medicare, and can’t be claimed as a dependent on someone else’s tax return.

What makes an insurance plan an HDHP?

An HDHP is virtually any health insurance plan that has a high minimum deductible and which does not cover the initial costs or all the costs of medical expenses.  For 2010, that deductible amount (as dictated by the IRS) must be at least $1,200 for an individual or $2,400 for family coverage.

What's the basic concept?

You save money on your insurance premium by having a high deductible, and you put that savings in a fund (HSA) to meet future medical expenses.  In essence, you pay a portion of your health-care budget to yourself instead of an insurance company.

How do I use my HSA to pay for medical expenses?

Money can be withdrawn tax-free for most medical expenses, including prescription drugs, doctor visits, medical testing, dental expenses and even alternative medical treatments.  Typically, you’ll receive a debit card from the financial institution where your HSA is held, and simply use that card to pay for those expenses which aren’t covered by your health insurance plan.

What happens to money I don't use?

Every year, the money not spent would stay in the account and gain interest tax-free.

How much can I contribute tax-free each year?

In 2010, you may contribute any amount up to $3,050 for single coverage ... $6,150 for family. IRS adjusts the amount each year.

Policy form numbers: C-006.3, C-006.4, GRI-H-5.7, MGR03927

PRODUCT AVAILABILITY AND PLAN DESIGN VARY BY STATE