Health Savings Accounts (HSA's) let you manage your own health care. You decide how to spend your money. Integrity First Insurance Services, Corp assists you by providing the information you need to make the decisions and carry them out.

 

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HSA's are combined with a High Deductible Health Plans (HDDP's). HSA's give you a tax advantaged savings account. HDHP's offer lower premiums while providing quality health coverage when you need it.

 

Health Savings Account (HSA)

 

  • Contributions are either pre-tax or tax deductible.
  • Interest earned on the money is tax-deferred.
  • Using the money to pay for qualified medical expenses is tax-free.

 

High Deductible Health Plan (HDHP's)

 

  • Lower Premiums.
  • Quality Coverage when you need it.
  • Preventive care benefits, as defined by HSA Regulations, can be covered without being subject to the calendar year deductible.

 

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  • Q: What happens if the HSA funds are used for non-qualified expenses?
  • A: Prior to age 65, money withdrawn from an HSA for any use other than qualified medical expenses will be taxed at the individual's ordinary income tax rate and receive an additional 10% tax penalty. After the individual has turned 65 years of age the 10% tax penalty no longer applies.
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  • Q: Where can I invest the money in my HSA?
  • A: You can invest the money in your HSA in bank accounts, annuities, certificates of deposits, stocks, bonds, mutual funds, certain types of Bullion or Coins (please see section 408(m)(3) of the IRS Code). However, your HSA custodian or trustee may offer only some of these types of investments.
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  • Q: I have an HSA but no longer have HDHP coverage. Can I still use the money that is already in the HSA for medical expenses tax-free?
  • A: Once funds are deposited into the HSA, the account can be used to pay for qualified medical expenses tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds.
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  • Q: What are some of the qualified medical expenses?
  • A: Since you have a high-deductible plan, this would of course include any expenses you incur from going to the doctor, purchasing prescription drugs, or paying other expenses toward your deductible. Once your deductible is met, the health insurance covers your medical expenses as defined in the policy.
  • In addition to being able to withdraw your money tax free to cover these types of expenses (which might otherwise be covered by a traditional low-deductible high-premium policy), you can use your HSA account to cover other costs that would not normally be covered by a health insurance policy.
  • These include:
    • Dental expenses. In a non-HSA compatible plan, individuals can typically only purchase dental discount plans, or fairly expensive dental policies with a limited choice of dentists. Coverage for braces is normally very limited. However, any of these medically necessary procedures can be paid for easily from your HSA account.
    • Mental therapy. Coverage includes the charges of psychiatrists, psychologists, psychoanalysts, and psychotherapists.
    • Physical therapy. This could include hydrotherapy, chiropractic services, or medical massage therapy.
    • Alternative treatments. Eligible treatments could include acupuncture, Ayurvedic Medicine, aromatherapy, homeopathy, Traditional Chinese Medicine (TCM), nutritional consulting, or even healing services provided by a Christian Science Practitioner or other type healer.
    • Transportation and lodging expenses, when related to health care.
    • Charges incurred as part of a preventive health program. This could include vaccines, blood tests, metabolism tests, and other lab tests, and even fees paid to a health institute or vitamins if prescribed by a doctor.
    • Nonprescription medications, such as aspirin or cough syrup.
    • Special fees incurred by handicapped individuals, including wheelchairs, telephone or TV equipment to assist the hard-of-hearing, the cost and care of guide dogs, or special school costs for the handicapped.
    • Maternity expenses that are not covered by your health insurance policy
    • Insurance premiums to pay for qualified long-term care
  • Also note that the HSA account can be used to pay these expenses for any spouse or dependent member of the family, even if they are not covered under the insurance policy.

 

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