Why You Need a Health Savings Account
The world of health insurance is more complicated than ever before. The passage of the Affordable Care Act has opened health insurance coverage to millions more Americans. Still, it has little to reduce costs or deal with steadily rising deductibles and copayments.
Even if you have health insurance, chances are it does not pay for 100% of your medical costs. Depending on the procedures you have done and the number of doctors you see that could mean thousands of dollars out of your pocket. Learn More about Health Savings Account at mbcecoNomy.
The Benefits of a Health Savings Account
Setting up and funding a health savings account can make those out-of-pocket costs easier to bear. You can contribute up to $3,350 to your health savings account for 2015. That contribution limit will allow many people to meet their annual deductibles with money left over. The money you put into the account could be deductible from your income, depending on your tax situation. If you qualify for a deduction, you could lower your taxes and recoup at least part of the account’s cost.
Funding a health savings account has benefits that go beyond taxes, however. You should consider setting up a health savings account even if you do not qualify for an immediate tax deduction. One of the benefits of health savings accounts over other savings programs is that the money rolls over from year to year. You might not incur $3,350 in out-of-pocket costs this year, but the money you put in will still be there should you need it in years to come. Find out more Health Savings Benefits at wow-golds.
Invest for the Future
If your health care costs are predictable, you can even invest the money you do not expect to use in the short term. Many health savings account providers allow individuals to put some of the money into mutual funds and other growth vehicles. That can allow the money to grow and make the account even more valuable.
Another big benefit of health savings accounts is their flexibility. Unlike some other tax-deductible accounts, which must be used for specific things, a health savings account can be used to pay for prescription medications, copayments at the doctor, annual deductibles, and even hearing aids and eyeglasses.
The healthcare professionals at Paradise Hearing say that if you schedule an annual hearing exam and find a deficit, you can pay for the hearing aid you need out of the funds in your health savings account. Many health savings account providers even give you a debit card you can use to pay for hearing aids, eyeglasses, and medications at the point of purchase.If you do not yet have a health savings account, why not make this the year you finally set one up? If you get your health insurance through your employer, the firm may even offer an HSA option to make your health insurance more affordable. There is no reason not to open and fund a health savings account with so many benefits. Get to know more about Health Insurance plans at quickstartmoneysite.