The IRS Deductions Blog

Posts Tagged ‘hsa’

Question: How much should it cost a family of four for 100% unlimited health care coverage with Zero Deductible?

Other than eyeglasses and dentist?

Answer: The insurance premiums must cover the cost of the medical care an average family of four consumes which is currently in excess of $12,000 a year in most places in the US. If your are asking how must this care would cost if we had a more efficient system, we can only judge buy the cost in other counties that has less waste, and the answer is between 50 and 70 percent of what it cost in the US. If you are asking what is fair or moral etc, I don’t know but it would have to depend on income since some families of four could not pay this amount and still have enough left over to live,

Items on Amazon Right Now for Deductible Coverage:

Meeting to discuss PEBP is Thursday

Proposed changes to the the Public Employees Benefit Program will be discussed in Fallon on Thursday night from 5-7 p.m. at the convention center. Among the items open for discussion are dental and vision coverage and the yearly deductible.

Accident Plan – $100 deductible, $10000 coverage

Items on Amazon Right Now for Minimum Hsa Deductible 2010:

Your money blueprint for 2011

If you make time each month to give your money some attention, you’ll start 2012 in fabulous financial shape.

Bipartisan Meeting on Health Reform: Part 5

Question: Can you use a HSA HDHP as a supplemental insurance policy to help with cash accumulation?

I am currently maxing my self-401(k), as well as my wifes.
We are both contributing $5,000 per year to our Roth IRAs.

I am looking for a vehicle to accumulate qualified money for retirement. Is an HSA a legit shelter, considering I have an amazing health plan, and never intend to touch the high-deductible plan.
We have zero debt (we were lucky and inherited a house) at age 29.
I’m a CFP (I’m just weak on insurance rules), so I know about brokerage accounts.
No plans of ever having kids, so a 529 isn’t necessary.

Answer: No. Rule number 1 is that you cannot have another health insurance policy. I switched my plan to an HSA to get the deductions, granted for years somebody was giving me coverage so I didn’t have one.

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PS Answer below is completely wrong as they do earn interest and you can even put the money into brokerage accounts. None of them expire at the end of the year. Why do people answer questions when they aren’t even close? I’d understand a typo or maybe not being 100% right all the time, but this is from left field.

Items on Amazon Right Now for High Deductible Health Plan Hsa:

Ohio Health Insurance Affordable Plans

Columbus – Leading health insurance companies like Anthem Blue Cross Blue Shield, Aetna, Medical Mutual, and Humana offer affordable plans for individuals and families. These include short term, catastrophic, comprehensive and HSA plans.

Retire Like 007 with HSA’s & HDHP’s “Health Savings Accounts

Question: How are Archer Medical Saving Account and Health Savings Account different?

Greetings All,
Could anyone tell me the difference between Archer Medical Saving Account and Health Savings Account?
Under High deductible plan, there is an out-of-pocket limitation. Does this mean a taxper is limited to only deduct a certain amount of medical expenses?

Answer: The Archer Medical Savings Account (MSA) was a precursor to the Health Savings Account (HSA). Major differences are:

1. The MSA applied only to self-employed individuals or employees in businesses with fewer than 50 employees. The HSA is available to anyone.

2. The Minimum Deductible amounts for both accounts was different. In 2005, the MSA single deductible was $1,750 versus $1,000 for HSA. Family Deductible differed similarly.

3. The contribution limits were different .. 65% of deductible for MSA versus 100% of deductible for HSA.

4. The penalty for nonmedical withdrawals was 15% for MSA, and it is 10% for HSA.

Anyway, this doesn’t effect any taxpayers who did not have an MSA, since the MSA expired in 2005 (no new MSA plans are being created). Persons holding an MSA can roll it over to an HSA.

As for your second question, in an HSA for 2007 a single person can contribute 100% of his deductible (or $2,850 whichever is less), plus an $800 catchup for age 50 or over. This is not related to the maximum OOP expenses. The maximum OOP expenses is a criterion for a plan to be an HSA.

Your contribution to the HSA is tax-deductible (or pretax if your employer contributes). When you pay medical expenses from your HSA, it is Not Tax Deductible. If you have other expenses that you did not pay out of your HSA, you can deduct them on Schedule A. In particular, OOP expenses not paid for with HSA money, no matter how much those expenses are, can be deducted on Schedule A.

From the wording of your question, you may be confusing a “tax deduction” on your tax return with the “deductible” on your HSA. The latter refers only to the HSA and not your taxes.

Items on Amazon Right Now for High Deductible Health Savings Accounts:

Wisconsin tax breaks for job creation get GOP lawmakers OK

Wisconsin Republicans have reached a deal with Gov. Scott Walker on a bill that would offer $33 million in tax breaks a year for creating jobs.

5 Reasons Why High Deductible Health Plans with a Health Savings Account

Question: High Deductible Health Plan Questions?

My employer is offering a High Deductible Health Plan option for insurance next year and I’m trying to decide if it would be a good choice. I’m 26, healthy and have no dependants. My deductible last year was $1,000 and I never came close to it (or the year before). This plan’s deductible is $1,500 and there is no premium. After the deductible is met they cover 90%, with a $3,000 out of pocket maximum. They also cover $500 yearly of preventative care. Prescriptions are treated like any other care and not covered before deductible (my current plan is a $10/$20/45 tier system). I wouldn’t have trouble covering the deductible but I’m wondering if there is anything I need to be aware of before I choose this plan. What are the downsides? Is an HSA difficult to set up and use?

Answer: I have been on an HSA qualified High Deductible Health Plan for the past three years and loving it. It is no everyday that uncle sam provides you a tax shelter and I take advantage.

Next year as an individual you will have the ability to put away $2,900 for future medical expenses. This would cost you about $55.00 a month to max out. This money would have been used on a premium payment anyway.

The key to HSA qualified healthplans is that it gives people the ability to accept more risk instead of the more common risk of paying more premiums then needed or used. Also, the money is yours to keep and moves with you if you get another job.

Personally, I use my HSA account as a glorified emergency fund. Pursuant to IRS rules, you can use your HSA account to fund Cobra payments. In the event I am laid off, I can use the account to fund my coverage until I can find access to other employment. Also is there if I have a traumatic event.

Is an HSA difficult to set up and use?

No, if you don’t find it difficult to open up a bank account with a debit card option.

Items on Amazon Right Now for High Deductible Hsa Plans:

Low Cost Philadelphia Health Insurance

Philadelphia – Low cost Philadelphia health insurance rates are available from many of the top Pennsylvania health insurance companies such as Independence Blue Cross, Aetna, UnitedHealthOne andnd HealthAmerica.

Understanding the Humana HSA Medical Plan