Found this story called “What You Need To Know About Health Savings Accounts for 2009” which is a bit misleading because it’s more of a testimonial than anything. That being said it’s a good read and explains why an HSA qualified plan was better for this family.

On the other hand if we do not incur any unreimbursed medical expenses, we do not lose the money in our HSA. Money that remains in the HSA is allowed to accumulate tax-deferred and can be withdrawn at any time, but would be taxable just like an IRA, including a 10 percent penalty before age 59.5. In addition, an HSA-eligible participant has until April 15, 2009 to make their contribution.

After eight months, we have:

1. Saved $589.68 in premiums
2. Incurred no claims towards the deductible
3. Contributed $5,800 tax deductible into our HSA

Health Savings Accounts are not for everyone, but it’s an option that should not be overlooked.

Since they stayed healthy the entire year if anything were to happen in the coming year the money they already have in the HSA covers the maximum out of pocket for 2009.

In talking to people “in the know” around Washington we’ve come to find out that the new Democratic government isn’t going to be going after Health Savings Accounts any time soon. Why? For one thing they are gaining popularity each and every day. For another, universal health care isn’t working.

To much fanfare from both right and left in 2006, Massachusetts became the first state in the nation to require all residents to buy health insurance. A new state health insurance clearinghouse was created, with taxpayers subsidizing those who couldn’t afford to buy coverage. Then Gov. Mitt Romney, a Republican, promised that “every uninsured citizen in Massachusetts will soon have affordable health insurance.” Yet just two years later, Romney’s much-heralded “solution” — touted by many as the model for a national program — has become an embarrassing flop.

Instead of making health insurance more affordable, this program has made it more expensive. The law to cover everyone has made up costing everyone an extra 56 percent, but that’s not the worst of it.

Small businesses with more than 10 employees were required to provide health insurance or pay an extra fee to subsidize uninsured low-income residents, yet the overall costs of the program increased more than $400 million — 85 percent higher than original projections. To make up the difference, payments to health care providers were slashed, so many doctors and dentists in Massachusetts began refusing to take on new patients. In the state with the highest physician/patient ratio in the nation, some people now have to wait more than a year for a simple physical exam.

This is clearly not what anyone had in mind and should be a pretty strong indicator to the Obama administration that universal health care has a long, long way to go before it ever works in this country. For now, we’ll take our HSAs.

Health Savings Account (HSA): Do I Lose It At the End of Each Year?
By Daryl Kulak

The Health Savings Account (HSA) is an amazing tool to reduce
healthcare expenses and insurance costs.  But do you lose it at
the end of each year, like with a Flexible Savings Account (FSA)? (more…)

Consumer Managed Health Care and Health Savings Accounts (HSA’s) May Be the Wave of the Future

By Christopher Beard

The need for reduced health care cost brought about the formation of Health Saving Accounts about four and a half years ago and their use has grown in use by American consumers exponentially. Most consumers will agree that health insurance is too expensive especially if you have a family to cover. Deciding what policy makes the most sense can be confusing regarding co-pays and deductibles, and features because the ones with the most features and lowest deductibles cost the most so you are left with the dilemma of determining how much will you actually use if you pay for all the bells and whistles. This is where the Health Saving Account can make it possible to get great coverage with a reduced premium and have a reserve expense account for when a major medical expense does occur. (more…)

Good article in the Journal Times out of Racine, Wisconsin that explains how HSAs can benefit employees and employers in a real common sense fashion.

Like many people, maybe you’ve read and heard about health savings accounts, but may still be asking: What exactly are they?

In a nutshell, they are an alternative to traditional health insurance plans that can offer certain tax advantages and the potential for added control over health care dollars and expenses. With a health savings account you can pay for current medical expenses, and save for future qualified and retiree health expenses, all on a tax-free basis.

Colleen King covers the question of whether married couples should open one Health Savings Account or two.

the question I want to address in this article is one aspect of setting up the actual HSA. When a family has an HSA eligible plan, should they set up one HSA or two? Well, when you set up an HSA for your family there can only be one account holder listed, but the money in the account can be used for all members covered by their family health plan.

Being single this is something that never occurred to me, but a married couple could stash away quite a bit of money with two accounts. Definitely food for thought.