HSA
Colorado HSA Qualified Health Insurance Plans
What is an HSA (Health Savings Account) Qualified Health Plan?
A health savings account is a federally authorized, tax favored savings account to be coupled with a high deductible health plan (HDHP). This combination provides more healthcare savings, a lower health insurance premium, immediate tax benefits, and a smart way to save for retirement.
Having copays on doctors visits, prescription drugs, and a low deductible is usually a waste of money. If you don’t require a health insurance plan with these benefits, your premium savings can be put into your tax deductible, interest bearing HSA. This money can still be used to cover the routine doctors visits and prescription drug costs that come before your deductible without ever being taxed. If you have a catastrophic event happen, your exposure is still limited to the deductible and coinsurance like a typical plan. Unused HSA funds can multiply to become a large part of your retirement portfolio.
THE TWO PARTS OF AN HSA
HIGH DEDUCTIBLE HEALTH PLAN
Simple Concept, Lower Premiums
An HSA qualified HDHP is setup so all covered expenses count toward the deductible, doctors visit and prescription drug copays aren’t allowed. The minimum deductible in 2006 for an individual is $1,050 and $2,100 for a family. The maximum out-of-pocket amount allowed (including the deductible and coinsurance) is $5,250 for individuals and $10,500 for families. For Colorado families, the deductible is always a cumulative deductible for everybody. The most popular coinsurance option is 100%, so this makes for a very simple and easy to understand health insurance concept.
Tax Exempt Savings Account
Save for retirement or pay for routine medical costs
You’re allowed to deduct whatever money you put into your health savings account. The maximum amount you are allowed to deposit into your HSA is either an amount equal to your deductible, or $2,700 for individuals and 5,450 for families (if your deductible is higher than this). This is per year, and unused funds in your health savings account roll over year to year and continue to accrue interest until you turn 65.
HSA Resources
Do you already have a Colorado HSA qualified health insurance policy, but are looking for a bank administrator to setup your health savings account? Compare bank administrators in Colorado on this spreadsheet…