Health Savings Accounts
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Health insurance is one of the most important financial tools you can have. Many people find it difficult to pay for medical treatments without health insurance, and with larger surgeries or expensive medications, health insurance can be very important to have. Health savings accounts will protect you in these unfortunate situations.
However, your health insurance plan may not cover all your out-of-pocket medical expenses, especially if you have chosen a plan with a high deductible or other restrictions. A Health Savings Account (HSA) can be used to pay your medical expenses that are not covered by your HMO or PPO plan.
What is an HSA savings account?
If you are a Florida resident, you may be eligible for a health savings account. Health savings accounts are funds that have been set aside (by you) that will specifically be used to pay medical expenses. They cannot be used for any other purpose.
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How does a health savings account work?
With each paycheck or bank deposit, a portion of your pre-tax income will be deposited into a health savings account. This amount is set by you and can change if necessary. When you need to pay a medical expense, you’ll be able to withdraw the money tax-free. In addition to helping to pay your medical expenses, a health savings account may also reduce your taxable income for the year.
You are in complete control of the money in your health savings account, and it cannot be used by anyone else, including insurance companies or providers. You don’t need approval from your insurance company to use the money in your account to pay your medical expenses. You have complete control over how much money you put into your account (although there are limits per year). You may also have the option of investing the money in your HSA into mutual funds.
What are the requirements for an HSA?
There are only three requirements for you to enroll in a health savings account. These requirements are:
- You must be covered by a high-deductible HMO or PPO with a $1,350 minimum deductible
- You cannot be claimed as a dependent on another person’s taxes
- You cannot be enrolled in Medicare
Once you open a health savings account, you can fund your account to the maximum amount until you are 65 years old. Any money that you do not use during the year will be rolled over to the next year. The 2019 maximum contribution limits for an individual is $3,500 and $7,000 for a family.
How do I open a health savings account?
Health savings accounts can be found through a number of institutions, including banks, financial advisors, credit unions, and insurance companies. You have a lot of options for an HSA, and it’s best to research a couple of HSA options before choosing one. SIG Insurance can also help you find the right HSA for you!
A health savings account is not necessarily the right choice for everyone. If you are considering opening a health savings account and live in Florida, talk to one of our expert insurance brokers. We can provide you with the advice you need to see if a health savings account is right for you. Because we offer solutions from many carriers, we can help guide you and answer any questions you may have. If you’re interested in opening a health savings account, contact us today!
Health Savings Accounts in Longwood FL, Melbourne FL and Venice FL
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