I am committed to helping you save money on insurance costs, and I hold a deep belief that one of the best ways to do this is to purchase a high-deductible health plan (HDHP) and then combine it with a health savings account (HSA). With the Affordable Care Act in full swing, there are many changes that are occurring in the health insurance industry, and I feel there are some important things that you need to be aware of.
To this end, my Sales Manager, Fred Adams, will be presenting a free webinar on our HSA for America website at 7:00 p.m. EST on October 15. He will be providing general information about HSA accounts and the many benefits of having one. Fred will also be discussing the different things you need to know about health care reform and how it is going to affect you.
What Is a Health Savings Account?
Although many of our clients already have an HSA in place, there are a lot of people who have either never heard of one or do not understand how they work. Some of the information I will be providing at this webinar is what an HSA is and is not.
Briefly, an HSA is not an insurance plan, but is instead a savings account that is set up specifically to be used for medical expenses. Some of these expenses include the premiums for your HSA-qualified health plan, your deductible and any copays you might be responsible for.
What Is a High-Deductible Health Plan?
An HDHP is exactly what it sounds like: a health insurance plan that has a high deductible, which means you are responsible for paying your deductible amount—usually anywhere between $2,500 and $10,000—out of your own pocket before insurance steps in to pay anything.
Why Combine the Two?
During the webinar, Fred will be discussing why it makes financial sense to combine an HDHP with an HSA. A health plan with a high deductible will typically be considerably less in monthly premium expenses, which can save you hundreds (if not thousands) of dollars in premiums alone.
Having an HSA will reduce your taxable income by the amount you have contributed (and not used) during the year. For example, if you contribute $2,000 to your HSA and do not use it, you will automatically receive a tax credit of $2,000.
What Other Benefits Are There to an HSA?
As it pertains to health care reform, one of the most significant benefits to having an HSA account is that it changes your adjusted gross income (AGI). Although Fred will go into more detail about this during the webinar, the basic premise is that however much you contribute to your HSA, that amount is deducted from your AGI. If you fund your HSA account with the maximum allowable, your AGI will be reduced by that much.
This is an extremely important benefit since with the ACA your premiums will be calculated based on your taxable income. The amount you will be expected to pay out-of-pocket for copays and deductibles also hinges on your AGI.
Therefore, if you can lower your income enough by contributing the maximum amount to your HSA, you very well may qualify for tax credits and reduced out-of-pocket expenses.
How Else Will Health Care Reform Affect Me?
Some of the things Fred will touch on during the webinar include how your eligibility for tax credits or premium subsidies will be affected by your income and how your group health coverage may disqualify you from purchasing health insurance on the exchanges or receiving tax credits.
All aspects of the Affordable Care Act are not negative; the fact that pre-existing conditions will no longer be excluded from insurance coverage and that preventive health care will be covered with no out-of-pocket expenses are examples of more positive benefits of reform.
Last, but most importantly, Fred will talk about how you can save money on your health care costs. With insurance rates and the cost of other medical expenses rising due to the implementation of the ACA, it is important to save money wherever you can. He will going to discuss with you the many ways you can keep more of your money in your own wallet instead of simply handing it over to your insurance company.
About the Webinar
This webinar is designed to provide information regarding how health care reform is going to impact you and your family, and will offer suggestions on how to weather these changes as financially unscathed as possible. I believe that having as much knowledge as possible can make you a wiser health consumer, which in turn gives you more control over your health care choices.
Please attend this free webinar on October 15 at 7:00 p.m. (EST) if you are interested in learning more about health care reform and the strategies you can use to cut your health care costs. There will be a live Q&A session directly following, so make sure to write down any questions you have so they can be answered.
For more information and to register for this free event, please visit the HSA for America webinar page. From there, you will see an orange button to click on to register. A pop-up box will appear, and you will be able to enter your information and your registration will be complete.
If you have any questions about this webinar or HSA for America, please visit our website or contact one of our Personal Advisors at 866-749-2039. We will be happy to answer any questions you might have regarding health care reform and the impact it will have on your life.
Wiley Long is President of HSA for America, and a passionate advocate for consumer-based solutions that will improve price transparency and lower health insurance and medical costs for people purchasing individual and family health insurance plans.