HDHP/HSA

In the attempt to provide Americans with more affordable heath insurance options, the idea of the Health Savings Account (HSA) arose. It is meant to replace high cost, low deductible health insurance policies that may be out of the reach of many Americans.

HSA’s consist of two elements:

  1. A high-deductible health plan or HDHP. This is a specific type of health insurance policy issued by an insurance company to meet government specifications.
  2. A Health Savings Account, which is a tax qualified savings account devoted solely to health expenses.

The monies for the HSA are deposited pre-tax and may be withdrawn tax-free for medical care including deductibles, vision and dental care, medications and medical supplies. Contributions to the HSA may be made by the employer, employee or both. Monies in the account not used for medical expenses each year continue to accumulate with tax-free interest and ultimately can be used for retirement medical expenses including long term care premiums. The monies can also be used to supplement retirement income but will be taxed when withdrawn if not used for medical expenses.

High deductible insurance policies typically cost less and the money saved can be put into the HSA account for deductibles and medical expenses. Also, they are designed to encourage consumers of health care to be more cognizant of the costs associated with their care.

Consumer-driven healthcare products offer a different approach to traditional group health insurance. There are a variety of products available and many different ways they can be implemented. We will assist you in determining if these products might be right

For a no-obligation quote, use our online Quote Forms under Resources or call 480.998.0096.